News

Daily Newsletter - 7 October 2019

Summary

FIC (1)

Interview with Ramona Jurubita, FIC President 

Interview with Ramona Jurubita, President of the Foreign Investors Council. She provides an analysis of Romania's economic situation. (please see the video starting with min. 3:25)

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Macroeconomic News (3)

Budget revenues outpaced by spending

The state collected RON 204 billion in total revenues between January and August, up 11.9% year-on-year, according to the Ministry of Finance. However, spending surged 14.8% to RON 226 billion, pushing the budget deficit to RON 21.9 billion, the equivalent of 2.1% of the GDP.

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Isarescu: It would be much wiser to adjust deficits gradually

Fiscal discipline, coherent economic policies and an ambitious, but viable schedule should help Romania join the eurozone in a manner that allows the economy to withstand competitiveness pressures in the zone. Closing the gaps between Romania's regions is also important, because it's the whole country that joins the eurozone, not just Bucharest and the Ilfov county, according to BNR Governor Mugur Isarescu.

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PM announces budget revision

Prime Minister Viorica Dancila announced in Vaslui, on Sunday, that the Cabinet would discuss and adopt a budget revision. "The budget revision will take place on Friday," said Dancila.

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Financial News (4)

BCR to pursue all legal avenues to clarify S&L bank status

BCR, part of Austrian financial group Erste, announced on Friday that it would pursue all legal avenues to clarify the status of the savings&loans banks. The statement came after the Minister of Finance, Eugen Teodorovici, said S&L clients would not have to return the premiums paid by the state.

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CEC Bank capitalization negotiations close to completion

Bogdan Chiritoiu, President of the Competition Council, announced that the talks with the European Commission regarding the capitalization of CEC Bank are close to completion and that the project has a good chance of being approved. "This is the third time the state wants to capitalize CEC. I think this time we'll be successful," said Chiritoiu.

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Raiffeisen Bank to stop offering non-RON deposits

Raiffeisen Bank has decided to stop offering deposits denominated in euros or US dollars, claiming that all retail loans are RON-denominated and, therefore, there's no point in offering deposits in other currencies. The 1 and 3-month deposits were also dropped, leaving only the 6-, 12-, 24, and 36-month options.

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Banca Transilvania expands to private pensions

BT Asset Management SAI and BT Investments, two members of the Banca Transilvania group, have bought Certinvest Pensii. The acquisition allowed the two entities to expand their financing services in the field of private pensions. Omer Tetik, CEO of Banca Transilvania, said the move is part of BT's focus on stimulating long-term saving through Pillar III options.

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Investment News (1)

CNAIR launched EUR 190 million auction

The National Road Infrastructure Administration Company (CNAIR) has put on the block the contract for building the beltway of Galati. The 33.6-kilometer road will be built in 90 months, at a cost of EUR 190 million. The money will come from the European Union, through the Major Infrastructure Program (POIM).

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Politics (2)

Kelemen Hunor proposed campaign pact

Kelemen Hunor, President of the Democratic Union of Romanian Magyars (UDMR) and also a candidate in the upcoming presidential election, put forward a pact that would ban personal attacks and insults between candidates during the campaign.

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President tells PNL to prepare for taking power

On Saturday, President Klaus Iohannis told the National Liberal Party (PNL) to prepare to form the next cabinet. The statement was made at the regional meeting of PNL organizations from north-eastern Romania. The president is certain the motion of censure would pass and that a new cabinet would be in place next week.

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Social (1)

Pensioner households top index

Most of Romania's 7.5 million households are pensioner households, based on the employment status of the household head, according to the National Statistics Institute (INS). Pensioner households account for 43.6% of the total, compared to only 39.6% employee households.

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