News

Daily Newsletter - 5 January 2018

Summary

Macroeconomic News (4)

Budget deficit below EU cap (Source: economica.net; Date: 2018-01-04; Author: Unspecified)

"The budget deficit cap was not exceeded last year. We're doing well," said government sources. The cap was set at 3% of the GDP through the 2017 state budget law, but concerns of an unwanted expansion of the deficit persisted throughout the year. The main measure taken by the government to stay below the cap was to increase excises in late 2017.

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Industrial production prices up 4.4% in November (Source: profit.ro; Date: 2018-01-04; Author: Unspecified)

The industrial production prices increased by an average of 4.4% in November, 2017, compared to the corresponding month of 2016, according to a press release issued by the National Statistics Institute (INS) on Thursday. The month-on-month change was +0.5%, compared to +0.7% in October.

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BNR foreign currency reserves up 1.3% (Source: bursa.ro; Date: 2018-01-04; Author: Unspecified)

The foreign currency reserves of the National Bank of Romania (BNR) stood at EUR 33.49 billion at the end of December, up 1.3% from the previous month, but down 2.1% on an annual basis, according to a press release. December inflows amounted to EUR 2.42 billion, mainly adjustments to the minimum reserves set up by lenders and the transfer of funds to the MFP and EU accounts.

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More than 167,000 Romanian tourists spent almost EUR 37 million at home (Source: news.ro; Date: 2018-01-04; Author: Unspecified)

More than 167,000 Romanian tourists welcomed the new year at local resorts, a 5.5% increase from the previous year. Their combined spending reached EUR 37 million, up 11% year-on-year, according to figures released by the Federation of Romanian Tourism Employers (FPTR). The most popular destinations were the Prahova Valley, Poiana Brasov, Paltinis and Ranca.

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Financial News (3)

ROBOR rate falls again (Source: news.ro; Date: 2018-01-04; Author: Unspecified)

The three-month ROBOR rate, which is used to calculate the interest rates of most RON-denominated loans, dropped to 2.03% on Thursday, according to the National Bank of Romania (BNR).

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BCR turns 28 branch offices into cashless units (Source: bursa.ro; Date: 2018-01-04; Author: Unspecified)

Banca Comerciala Romana (BCR) announced that it would turn 28 branch offices around the country in cashless units. The new units will handle solely electronic transactions. This is a new stage in BCR's modernization process. The bank wants to reach a total of 125 cashless units by the end of this year.

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Private borrowing could grow 3.9% this year (Source: zf.ro; Date: 2018-01-04; Author: Unspecified)

Private borrowing could increase 3.9% this year, compared to the preliminary figure of 4.7% put forward for 2017, followed by a sharp reduction in 2019 and 2020, according to Andrei Radulescu, senior economist at Banca Transilvania. "In other words, we expect the borrowing market to slow down in the coming quarters, as the post-crisis cycle of the real economy reaches maturity and the real cost of financing seems to be rising gradually," said Radulescu.

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Politics (2)

PSD executive president announces possible Cabinet reshuffling (Source: cursdeguvernare.ro; Date: 2018-01-04; Author: Unspecified)

Niculae Badalau, executive president of the Social Democratic Party (PSD), stated on Wednesday that the party must come up with a replacement for Doina Pana, the outgoing Minister of Water and Forests. However, since Liviu Dragnea has already announced a reshuffling, the Ministry of Water and Forests might be folded into the Ministry of Environment.

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Dragnea and Tudose prepare for showdown (Source: adevarul.ro; Date: 2018-01-04; Author: Unspecified)

Prime Minister Mihai Tudose is campaigning hard among PSD leaders around the country in order to remove Liviu Dragnea, while Dragnea wants an extraordinary congress that would confirm his control of the party. The barons who are expected to tip the scales are Niculae Badalau and Paul Stanescu, neither of whom has piked a side so far.

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Social (1)

Family doctors continue protests (Source: adevarul.ro; Date: 2018-01-04; Author: Unspecified)

Family doctors continue their protest against the bureaucracy plaguing the medical system. Approximately a quarter of them refused to sign the addenda to the CNAS contracts. Because the deadline for signing the addenda has already passed, the protesting doctors can provide services only by signing three-month contracts with the CNAS.

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