News

Daily Newsletter - 6 December 2018

Summary

Macroeconomic News (2)

Wages up 14% in past year

The value of wages adjusted for the number of working days increased by 13.91% in the third quarter of this year, compared to the corresponding quarter of 2017, according to the National Statistics Institute (INS).

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Real estate transactions contract for four consecutive months

Romanians bought and sold over 46,500 properties, houses and apartments in November, down 21% compared to the corresponding month of last year, according to data from the National Land Registry and Real Estate Advertising Agency (ANCPI). This was the fourth consecutive month of massive declines in sales. The trend started in August this year, when Romanians suddenly stopped buying, sending the number of transactions plunging 30%. September brought a 26.4% contraction, plus a further 14% in October.

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Financial News (2)

ARB launches financial education program

The Romanian Banking Association (ARB) launched the first edition of the "Education and Banking Competence for Teachers" training program. The purpose of this program is to train groups of specialized trainers and teachers from schools and high schools in order to disseminate financial and banking concepts among students and young people.

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BNR: Debtor relief is rocking the banking system

The opinion sent by the National Bank of Romania (BNR) to the Parliament's commissions includes a scenario showing how the stability of the banking system would be affected if the amendments proposed by Senator Daniel Catalin Zamfir to the debtor relief regulations passed successfully. BNR pointed out that nine banks (including one state-owned banks) would need serious capital injections. The nine account for 40% of total banking assets. If debtor relief was extended to the Prima Casa program, the additional capital requirement would be EUR 400-500 million.

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Investment News (1)

Craiova authorities secure EUR 15 million in infrastructure financing

The European Bank for Reconstruction and Development (EBRD) has granted a USD 15 million loan to Craiova authorities for new buses and high energy efficiency public buildings. The bank will finance the rehabilitation of 14 public buildings and the purchase of up to 40 low-polluting buses (EURO 6). The investment will contribute to reducing energy consumption and carbon dioxide emissions, improving the quality of the environment and life in Craiova.

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Legislative News (1)

Political bills come due

The labor unions representing the Penitentiary Administration employees published on Wednesday a draft decree, which is expected to be approved at Friday's Cabinet meeting. The bill includes measures to freeze pensions, salaries and other benefits at this year's level. Many benefits granted over time to public employees are eliminated.

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Politics (2)

President Iohannis: "I've had enough of criminals at the top of Romanian politics"

President Klaus Iohannis said on Wednesday, at the launching of the public debate regarding the "Educated Romania" project, that he had had enough of criminals at the top of Romanian politics, stressing that "if we want something else, we have to do something." "The issue of values and integrity has rarely been brought up over the last 30 years. And we realize now that it was a major mistake. A society is just as good as its education system," said Iohannis.

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Opposition tries to force Dragnea out

The leader of the PNL caucus in the Chamber of Deputies, Raluca Turcan, proposed on Wednesday the removal of Liviu Dragnea from the position of Chamber president, along with the removal of vice-president Florin Iordache. The proposal was put forward in the absence of Liviu Dragnea. Florin Iordache was chairing the session and he refused to put the two proposals to a vote, saying they were "outside the rules".

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Social (1)

State grants for employment

Companies that hire unemployed individuals or young graduates will receive a grant of RON 2,250 per month per person for 12 months, according to a press release from the Ilfov County Workforce Agency (AJOFM). The aid program focuses on employers that hire unemployed individuals aged over 45 or single parents supporting single-parent families, as well as people suffering from long-term unemployed or young people aged 16-25.

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