Daily Newsletter
05 July 2019
Summary
Macroeconomic News (3) |
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Retail turnover up only 3.9% in May
The retail sector posted a 3.9% increase in turnover for May, not as good as the previous month's 7.1%, according to data released by the National Statistics Institute (INS) on Thursday. Sales of cars and motorcycles are not included in these figures. Top |
Isarescu: Economic growth has come from consumption stimulus, but this cannot go on much longer
The challenge for the coming period is maintaining economic growth during a fiscal consolidation, given that consumption does not have much room for growth, according to Mugur Isarescu, Governor of the National Bank of Romania (BNR). Top |
State budget is RON 7 billion short
The budget review is scheduled for July 31, by which time the Minister of Finance, Eugen Teodorovici, is supposed to come up with a list of measures to be implemented by the end of the year in order to stay below the 3% deficit cap, according to political sources. Minister Teodorovici announced at Wednesday's Cabinet session that the budget is RON 7 billion short. Top |
Financial News (3) |
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BNR keeps key rate at 2.5% per year
The National Bank of Romania's (BNR) board of directors has decided to keep the key rate at 2.5% per year on grounds that the inflation rate is stable. However, the board warned that recent fiscal and budget measures fuel inflation risks and uncertainties. Top |
Isarescu: New IRCC rate is inflation risk
The new IRCC benchmark rate, which replaced ROBOR in the calculation of adjustable interest rates for loans, could go up in lockstep with the inflation rate, thus stimulating borrowing more than is prudent, according to the National Bank of Romania (BNR). The issue is being discussed with the Ministry of Finance (MFP) in order to find solutions to the problems caused by the rules used to calculate the rate. Top |
BCR explores blockchain database solution
BCR is exploring the implementation of a blockchain database solution developed by Romanian programmers working for Modex, part of the M3 group founded by entrepreneur Mihai Ivascu. Modex will expand its relationship with BCR after taking part in the BCR-InnovX accelerator, a program dedicated to tech companies that develop solutions for cybersecurity, fintech, AI, machine learning, robotics, cloud, automation and microservices. Top |
Investment News (2) |
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CFR auctions feasibility studies
The National Railroad Company CFR SA announced on Thursday the launching of auctions for the feasibility studies needed in order to begin the modernization of 23 railroad stations. These contracts are worth an estimated RON 6.8 million, VAT not included, and are part of the Major Infrastructure Operations Program (POIM). Top |
EU funds support trend to adapt
Private investment funds supported by European and private money increasingly tend to cover the area of small equity investments in SMEs, below EUR 10 million, which is not interesting to private equity funds. The trend is welcome given the undercapitalization of SMEs, but it is restricted by the appetite for the economic sectors that promise the highest possible return on investments, corresponding to the private contribution to total resources. Top |
Legislative News (1) |
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Energy companies arrears erased
The Cabinet approved on Thursday a decree that erases the debts of the big state-owned energy companies by seizing their functioning assets. These assets are crucial to the functioning of the national energy system. Top |
Politics (1) |
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President reaffirms determination for US partnership
Romania's strategic priority is and will be a strong transatlantic relationship, said President Klaus Iohannis at the July 4 reception organized by the US Embassy. Top |
Social (1) |
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Romanian women postpone pregnancy decision
More than 30,800 children born in 2017, 15% of the total number of about 200,000 children born in Romania that year, come from mothers above the age of 35, according to the Eurostat data. The number of babies born to mothers aged over 35 increased by 47% between 2008 and 2017. Top |