Daily Newsletter - 6 July 2018


Macroeconomic News (3)

BNR Governor Isarescu: "The Romanian markets and economy are reasonable"

The Romanian markets and economy are reasonable and the so-called excesses presented to the public are largely the result of media focus, according to Mugur Isarescu, Governor of the National Bank of Romania (BNR). "I think the media should ask: what part do we play in calming spirits and promoting a fair view of the situation," said Isarescu.


Electricity prices up 12%

The Industrial Production Price Index climbed to 5.24% in May, a massive increase from the -2.69% posted two years ago. The industry is the trendsetter for the national economy, given that it accounts for 24.2% of the GDP. Three months ago, an alarm bell was sounded regarding the effects of industrial inflation throughout the economy.


National fish market up almost 10% in 2018

The national fish market grew almost 10% in the first half of 2018, compared to the corresponding period of 2017, and it expects a 10% increase in sales for this entire year. Alfredo Seafood representatives put the annual sales estimate at close to EUR 380 million.


Financial News (3)

Cash withdrawals up 6%

Cash withdrawals from ATMs increased by 6%, while payments made with cards grew at approximately 37%, according to Catalin Cretu, Visa general manager for Romania, Croatia, Malta and Slovenia.


BNR Governor: "ROBOR was 4-5% before and nobody died"

The ROBOR rate had been as high as 4% in the past and nobody died in Romania, according to Mugur Isarescu, Governor of the National Bank of Romania (BNR). The three-month ROBOR rate, which is used to calculate the adjustable interest rates of most RON-denominated loans, reached 3.34%.


BNR Governor urges banks to change business models

The banks have the resources to foster a sustainable increase in corporate lending, but the country needs measures for regulating companies and boosting the guarantee funds, according to Mugur Isarescu, Governor of the National Bank of Romania (BNR). "There's potential for expanding corporate lending," told Isarescu to the guests gathered at the Bankers Summit 2018 conference.


Investment News (1)

Vel Pitar invests in new Bucharest bakery

Vel Pitar, a baker controlled by investment fund Broadhurst, will build a new bakery in Bucharest this year. The project is worth more than RON 12 million.


Legislative News (2)

CCR: ANCOM appointment procedure is partially unconstitutional

The Constitutional Court accepted on Wednesday the complaint filed by President Iohannis regarding the bill implementing the decree regulating the establishing of the National Communications Management and Regulatory Authority (ANCOM).


Senate passes tax exemption

Farmers who cultivate medicinal and aromatic herbs will receive a tax exemption on their revenues from a certain acreage, according to a bill passed by the Senate on Thursday.


Politics (2)

Barna: This is the beginning of the end for Liviu Dragnea

Dan Barna, President of the Save Romania Union (USR), said Dragnea had gone too far when he asked the head of ANAF and the Minister of Finance to take action against President Klaus Iohannis on a real estate matter. Barna added that "USR would fight so that Liviu Dragnea fails in his fatal plan".


Dragnea and Tariceanu move against President Iohannis

With the Criminal Code modification taken care of, Liviu Dragnea is preparing for his next move against the "parallel state". The new target is President Iohannis, who keeps postponing the decision regarding the fate of DNA head Laura Kovesi.


Social (1)

Higher subsidies for employers

Employers will receive more subsidies from the state for hiring people belonging to vulnerable groups, according to a decree approved by the Cabinet on Thursday.