News

Daily Newsletter - 4 September 2019

Summary

Macroeconomic News (4)

Wages exceed EU macroeconomic stability threshold

Wages increased 5.70% quarter-on-quarter and 12.46% year-on-year, according to adjusted data released by the National Statistics Institute (INS). The annual growth rate exceeded the 12% threshold stipulated by the European Union's macroeconomic stability requirements.

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Political instability increases financial risk

The demise of the ruling coalition increases the political uncertainty, especially since three elections are scheduled within the next year and the macroeconomic imbalances are worsening. While the end of the coalition has a negative impact on the Cabinet's attempts to keep the budget deficit under control, it might also convince the Cabinet to shelve the plans to increase pensions by 40% next year.

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Natural gas prices should be deregulated in two years

The Association of Utilities Companies (ACUE), which includes the major distributors and suppliers of electricity and natural gas, has drafted a document indicating that a sudden deregulation of the electricity and natural gas markets as a result of the Decree 114 repeal could see prices going up too fast for consumers to cope.

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Romania had biggest increase in industrial production prices in EU

Romania reported the biggest increase in industrial production prices in the European Union for July, compared to the corresponding month of 2018, according to data released by Eurostat on Tuesday. The national price growth rate was 6.2%, compared to an EU average of 0.6%.

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Financial News (5)

Banca Transilvania expands online services for entrepreneurs

Banca Transilvania has expanded the online services offered to entrepreneurs, while also launching the option of opening share capital accounts from desktops or mobile devices. The bank charges no account opening fee. The purpose of this option is to make it as easier as possible for entrepreneurs to open new businesses. The bank has almost 275,000 SME and Microbusiness clients.

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Deloitte Romania launches Processo platform

Deloitte Romania has launched the Processor automation platform, which allows companies to create business and decision models. The platform, which was designed mainly for SMEs, corporations and public authorities, can also be integrated into the systems that companies already use.

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EximBank turns into universal bank with BR acquisition

The Ministry of Finance says EximBank must diversify its banking operations by entering the retail market and becoming a universal lender. The lack of financing is the main reason put forward for the decision to buy Banca Romaneasca.

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Libra Internet Bank posts RON 51 million in H1 earnings

Libra Internet Bank, a small bank specializing in financing professionals, posted RON 51 million in earnings for the first half of this year, twice higher compared to the end of Q1, 2019, and 10% above the earnings of H1, 2018. The bank's loan portfolio reached RON 3.74 billion.

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RE/MAX Romania: Real estate transactions reached EUR 79 million in H1, 2019

RE/MAX Romania, the biggest real estate franchise in the country, reported a tripling of rental transactions for the first half of this year, compared to the corresponding period of 2018. The aggregated value of these transactions was around EUR 79 million.

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Investment News (3)

Veeam Software expands Bucharest center

Veeam Software Romania, a provider of data management and security solutions for virtual environments, announced it would expand its Business Garden Bucharest presence by another 2,300 square meters in order to house its growing team. The company also occupies three floors in AFI Park 5.

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Cohesion Fund invests EUR 275.7 million in water quality improvement

The Cohesion Fund will invest EUR 275.7 million in water quality improvement and the upgrading of waste water collection and treatment in the Cluj and Salaj counties. The project will increase the coverage of the drinking water network in these counties from 79% to 95% of the population.

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Romania spent EUR 2.3 billion of EUR 9.2 billion in EU funds

Romania has absorbed EUR 2.3 billion of the EUR 9.2 billion in funds allocated by the European Union through the major infrastructure program (POIM) for 2014-2020. The absorption rate is 25%.

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Politics (2)

PM Dancila waits for president answer

Prime Minister Viorica Dancila announced on Tuesday that she was waiting for President Klaus Iohannis to reply to her proposals of interim ministers for Energy, Environment and Parliament Relations.

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ALDE threatens to kick Melescanu out

Senator Teodor Melescanu would be kicked out of ALDE unless he rejects the nomination to the position of Senate President, which was put forward by the Social Democratic Party (PSD). The ALDE leadership decided on Tuesday to strip of membership any party member who accepts any job from the PSD.

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Social (1)

Romanians have lowest number of foreign holidays, lowest average spending per holiday

European Union citizens spent around EUR 467 billion on holidays in 2017, with Germans accounting for 26% of the total, according to Eurostat. Romanians have the lowest percentage of the population going on holiday, the lowest percentage of people traveling abroad, and the lowest average spending per holiday.

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