News

Daily Newsletter - 5 December 2018

Summary

Macroeconomic News (3)

BNR Governor: "Inflation is a sneaky disease"

Inflation is a very sneaky disease that can occur in various forms and has various causes, according to the Governor of the National Bank of Romania (BNR), Mugur Isarescu. The head of the national bank made this statement yesterday at the "Inflation Over the Past Ten Years" conference. From 2008 to the present, the average inflation rate had an oscillating trajectory, proving volatile throughout this period.

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Industrial production prices up in October

Total industrial production prices - both domestic and foreign - increased by 6.3% in October, compared to the corresponding month of last year, according to data released by the National Statistics Institute (INS) on Tuesday. In September, industrial production prices rose by 5.6% compared to the corresponding month of last year, after a 5.9% gain in August.

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Teodorovici: Draft budget for 2019 to be discussed and approved next week

Minister of Public Finance, Eugen Teodorovici, said that next year's draft budget would be discussed and approved at next week's Cabinet meeting. The bill will include the amounts needed to pay the public sector salaries, as stipulated in the Payroll Act of 2019, as well as the funds needed to increase the pension point in the autumn of next year.

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Financial News (3)

BNR reacts to Senator Zamfir's new initiative

The National Bank of Romania (BNR) analyzed the amendments to the debtor relief regulations, which redefine the terms on which judges will assess the cases of unpredictability involving debtors. BNR sent the Parliament a document saying that the amendments initiated by Senator Daniel Zamfir (ALDE) would change the purpose of the law and are unconstitutional. Moreover, BNR says unpredictability cannot be established by law, and the amendments would negatively affect both debtors and creditors.

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BNR foreign currency reserves up

The foreign exchange reserves held by the National Bank of Romania climbed to EUR 32.531 billion in November, up EUR 162 million from the end of October. Last month brought inflows worth EUR 931 million, representing the modification of the minimum foreign currency provisions set up by lenders, transfers to the accounts of the Ministry of Finance and other funds.

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Steven van Groningen, Raiffeisen: 2018 was a very good year for us

Raiffeisen Bank Romania posted the biggest increase in earnings for the first nine months of this year (91%). The significant increase in earnings was determined to a good extent by a surge in corporate funding.

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Investment News (2)

P3 buys property outside Bucharest for second logistic park

Logistics park developer P3 Logistics Parks has bought a 16-hectare property in Dragomiresti Vale, northwest of Bucharest, where it will set up a new 80,000 sqm logistics park, the second investment project for the company in Romania.

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Only 68% of Romanian companies invested last financial year

The investment deficit remains significant in Romania, despite strong growth in recent years, which was driven mainly by consumption. Investment activity remains one of the lowest in the EU: only 68% of companies invested in the last financial year, compared with an EU average of 87%, according to the annual survey conducted by the European Investment Bank (EIB).

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Legislative News (1)

Special committee completes amendments to

The Special Parliamentary Committee on Justice adopted the amendments to the Criminal Procedure Code, following the Constitutional Court's decision, one of which was the deletion of the phrase "sound evidence" in the case of criminal proceedings. According to the new text, criminal proceedings are initiated and exercised when there is evidence that a person has committed an offense and there are no cases that prevent it from being put into motion or exercised.

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Politics (2)

Ponta prepares his revenge

Liviu Dragnea's removal from the position of Chamber of Deputies president depends on one condition: the unification of opposition forces. Victor Ponta, who has put an end to the PSD-ALDE majority, will propose in the next few days a modification of the Chamber rules in order to remove Liviu Dragnea, his bitter rival.

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PM Dancila wants eurozone accession in 2024

Prime Minister Viorica Dancila said she was taking responsibility for doing everything that needs to be done to have Romania join the eurozone in 2024. "Romania has committed itself to joining the euro area with the fulfillment of conditions and we have recently set a clear time frame for this goal: 2024," said the PM.

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