Daily Newsletter - 5 April 2019


Macroeconomic News (3)

Consumption keeps rising

In February, consumption increased by 9.1%. The retail sector's turnover, the most important indicator for private consumption, grew by 8.2% in the first two months of 2019, compared with the corresponding period of 2018, supported by a good February situation, according to data from the National Statistics Institute (INS).


Almost EUR 1.7 billion could be injected in Romanian economy

The value of profits that foreign companies made in 2018 and could inject into the Romanian economy in 2019 is approximately EUR 1.7 billion, but the decision to invest depends on fiscal and legislative predictability, said Oana Motoi, Managing Partner, Cromwell Evan Global.


Cabinet to borrow another EUR 1.25 billion from abroad

The government intends to borrow another EUR 1.25 billion this year from the foreign markets, after the EUR 3 billion loan recently contracted by selling 7, 15, and 30-year Eurobonds, the highest amount borrowed through a single issue so far. The Ministry of Finance said the EUR 3 billion will be used as a reserve by the State Treasury because it covers over 7 months worth of financing needs.


Financial News (3)

Fitch Ratings upgraded BCR and BRD ratings

Fitch Ratings has upgraded the rating outlook for BCR and BRD from "negative" to "stable". The agency confirmed the viability ratings of BCR and Banca Transilvania at BB+. UniCredit's viability rating was confirmed at BB, Garanti Bank at BB-, and ProCredit Bank at B+. The decision reverses the agency's previous decision, which had been prompted by the issuing of Decree 114.


3M ROBOR rate climbed to 3.38%

The three-month ROBOR rate, which is used to calculate the adjustable interest rates of most RON-denominated loans, increased to 3.38% on Thursday, a five-month high, according to the National Bank of Romania (BNR).


MFP borrowed RON 200 million

The Ministry of Finance (MFP) borrowed RON 200 million at 5.21% per year. The bonds mature in 2031. The total demand was RON 585 million, but the banks offered only RON 462 million.


Investment News (2)

Minister of Transport: Subway Trunkline 5 will be ready this year

Subway Trunkline 5 will see its first trains run before the end of the year, according to the Minister of Transport, Razvan Cuc. The Minister promised that construction work on the Eroilor-Drumul Taberii section will be finished by the end of October, while the automation work will be done in December.


Ministry of Health allocates RON 10 million to Arad hospitals

Health Minister Sorina Pintea visited several healthcare facilities in Arad county on Thursday. She announced that RON 6 million had been allocated for equipment purchases for the County Hospital, as well as the hospitals in Ineu, Sebis and Lipova. The sum will be supplemented by RON 4 million later.


Legislative News (2)

Proprietatea Fund could take Decree 114 to EUCJ

The first target for the Proprietatea Fund is to prevent the implementation of Decree 114 because of the financial damage it would cause to the companies in the fund's portfolio, especially to energy companies. To this end, the fund could take the decree to the European Union Court of Justice.


Cabinet could approve tourism bill in two weeks

The Cabinet could approve the tourism bill in two weeks, a bill featuring a section about the computerized tourism booking system, according to Minister Bogdan Trif. "It is important to have that real time computerized system, to know how we are doing so that we can diagnose and take effective and real-time measures. It's mandatory to achieve this so that we can maximize the efficiency of tourism in Romania. We've got all the approvals, except the judiciary," said Trif.


Politics (2)

President Iohannis announced referendum themes

President Klaus Iohannis announced on Thursday that he had sent the Parliament a letter regarding matters of national interest that would be put before the people at the May 26 referendum.


Tariceanu throws cold water on referendum

Calin Popescu-Tariceanu, leader of ALDE, said on Thursday evening that, if the referendum is validated, it should be followed by a citizen initiative signed by 500,000 citizens. However, the Constitution stipulates that citizen initiatives cannot involve amnesty and pardons.


Social (1)

Cabinet allocates Rabla funding

The Environment Fund Administration's (AFM) budget was published in the Official Gazette at the beginning of this week. The budget includes the amounts allocated for the Rabla Clasic and Rabla Plus cash-for-clunkers programs.