News

Daily Newsletter - 4 October 2019

Summary

Macroeconomic News (4)

Retail turnover up 6.7% in August

The retail sector reported a 6.7% increase in turnover for August, down from the previous month, according to data released by the National Statistics Institute (INS) on Thursday. July's growth rate had been 8.3%.

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Consolidated budget deficit up

The deficit of the consolidated budget climbed to 2.1% of the GDP at the end of August, up from 1.7% at the end of July. The figures were released by the Ministry of Finance (MFP) eight days later than expected. The consolidated deficit stood at RON 21.9 billion.

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Romania maintained highest industrial price increase in EU

Romania's industrial prices grew 4.7% in August, compared to the previous year, thus maintaining the highest growth rate in the European Union, according to data released by the EU's statistics bureau on Thursday. At the EU level, industrial prices dropped 0.3%.

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EIB announces tripling of support for Romanian economy

Andrew McDowell, Vice-President of the European Investment Bank, announced in Bucharest on Thursday that the EIB group would provide Romanian companies with three times more loans than before. "The SME initiative combines structural funds with other EU and EIB resources in order to make loans available to 5,000 Romanian SMEs on better terms, helping create sorely needed jobs in the private sector," said McDowell.

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Financial News (3)

Banca Transilvania pays 3.5% interest on 12-month deposits

The top 10 local banks pay between 0.35% and 3.6% interest on 6- or 12-month term deposits denominated in the national currency, according to data aggregated by ZF using the banks' own websites. Banca Transilvania pays 3.5% interest on 12-month deposits, while BCR pays only 1.05%.

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MFP to borrow almost RON 4 billion

The Ministry of Finance (MFP) has RON 3.99 billion worth of loans scheduled for this month, including RON 200 million through an issue of discount T-bills and RON 3.3 billion through seven issues of state bonds. Supplementary auctions for non-competitive bids could bring in another RON 495 million.

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BNR Governor says stronger monetary policy is not cure-all for fiscal problems

The National Bank of Romania (BNR) strengthened its monetary policy by deciding to maintain the reference rate at 2.5% at a time when the big central banks are slashing interest rates, noted BNR Governor Mugur Isarescu. The Governor added that a stronger monetary policy is not a cure-all for every fiscal problem.

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Investment News (2)

Apex to open first Courtyard by Marriott in Romania

Lithuanian company Apex will open in two weeks the first Courtyard by Marriott hotel in Romania. The EUR 30 million project will be followed by two other hotels next year: Moxy by Marriott and Autograph by Marriott, according to CEO Gerhard Erasmus. The company also owns two Hilton Garden Inn hotels in Bucharest.

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Decathlon and Casa Rusu opened two stores in Satu Mare

Retailers Decathlon and Casa Rusu opened two stores in Aushopping Satu Mare, a project developed by Ceetrus, the company formerly known as Immochan. The shopping center is spending EUR 11.5 million on doubling its retail area.

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Legislative News (1)

CSM wants ANI charter watered down

Lia Savonea, President of the Superior Council of Magistrates (CSM), has sent Parliament a series of controversial amendments to the charter of the National Integrity Agency (ANI). The amendments came right after ANI started looking into Savonea's own fortune.

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Politics (1)

PM blasts president

Prime Minister Viorica Dancila wrote an ironical post on Faceboook, urging President Klaus Iohannis to comply with the Constitutional Court's ruling and sign the decree appointing the interim ministers, noting that she hadn't even asked him to work on a weekend.

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Social (1)

Reference Social Indicator forgotten for 7 years

The so-called Reference Social Indicator (ISR) has been stuck at RON 500 since its launching seven years ago. The problem is that a number of social security options depend on it, including the unemployment aid, which has been unpegged from the minimum salary.

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