News

Daily Newsletter - 7 January 2019

Summary

Macroeconomic News (3)

ASF: Optional pension funds assets up 15.91%

The optional pension funds had assets worth about RON 2.03 billion on November 30, 2018, up 15.91% compared to November 30, 2017, according to data released by the Financial Supervisory Authority (ASF). State bonds accounted for the largest share of these assets: 58.54% (RON 1.19 billion). The second place went to stocks: 22.29% (RON 453.9 million).

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Romania saw industrial production prices go up

Industrial production prices rose by 4% in the eurozone and in the European Union in November, compared to the corresponding month of 2017, according to data released by the European Statistics Office (Eurostat) on Friday. Most countries reported increases in industrial producer prices in November, with the most significant gains coming from Belgium (9.3%), Denmark (9.2%) and Estonia (8.6%).

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Depreciation map

The official economic growth forecasts for Romania fell in many rich counties this year. The more developed economy and in particular the industry located in the richer counties failed to offset the decrease in consumption in the estimates issued by the National Forecast and Strategy Commission (CNSP).

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Financial News (2)

"The optimistic scenario is that two banks remain profitable in 2020"

The National Bank of Romania (BNR) has warned that the greed tax hurts the banks' solvency and profit margins, is incorrectly pegged to the ROBOR rate (an indicator reflecting the central bank's monetary policy and not the commercial strategy of banks), risks turning some of the foreign banks into subsidiaries, which would weaken the impact of BNR's macro-prudential policies, and may increase the cost of financing public and private debt.

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Daianu criticizes greed tax

Daniel Daianu, a board member of the National Bank of Romania (BNR), has published on the BNR website an opinion regarding the tax on bank assets implemented by a Government decree. The tax is pegged to the ROBOR rate, an interest rate indicator that is set by the interbank market. Daianu said this link could hurt BNR's monetary policy, while also pushing many banks in the red.

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Investment News (2)

Ski slope opens

The ski slope located on the Rarău Mountain, a government-financed investment, was officially opened on Saturday in the presence of Tourism Minister Bogdan Trif. The Minister said the investment project, worth about EUR 15 million, was financed mainly by the Ministry of Tourism. The Ministry will try to allocate funds for the construction of the second section, which would make this slope the longest in Romania.

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Fourth District Hall to build multipurpose medical center

Bucharest's Fourth District Hall is ready to spend EUR 3.91 million on setting up a multipurpose medical center, according to an announcement published on procurement platform SICAP.

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Legislative News (2)

Minister of Labor: "We'll certainly have a pension law"

The pension point increase schedule will be observed, these increases being also included in the decree featuring fiscal and budget measures approved at the end of last year, according to Labor Minister Marius Budai.

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Fiscal decree could destroy private jobs

The Government's fiscal decree, issued at the end of last year, will have a major negative impact on the population as well. At least this is what the labor leaders say. The unions expect private companies to begin slashing jobs.

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Politics (2)

PSD considers criminal complaint against President Iohannis

PSD Secretary General Codrin Ştefănescu said the party is considering filing a criminal complaint against President Klaus Iohannis for refusing to accept the sacking of Attorney General Augustin Lazar, stating that the president has committed an act of influence peddling.

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Senate President: The PM is prepared for the president's chicanery

Senate President Calin Popescu Tariceanu, leader of the ALDE, says Prime Minister Viorica Dancila is ready to face President Klaus Iohannis "chicanery", such as delaying the revocation or appointment of ministers. Tariceanu added that the Cabinet and the ruling coalition would not be held back by President Iohannis.

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