News

Daily Newsletter - 8 August 2018

Summary

Macroeconomic News (2)

Interest rates fall in wake of BNR decision

The National Bank of Romania (BNR) went against the analysts' expectations by keeping the key rate at 2.5% and throwing more than RON 10 billion worth of cash on the market. Analysts expected BNR to tighten the monetary policy in order to rein in the inflation rate. The inter-bank rates stagnated, while the RON depreciated.

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MFP proposes first positive budget adjustment of 2018

The Ministry of Finance (MFP) has drafted the first positive budget adjustment of 2018. The state of the economy supports the possibility of achieving the 5.5% growth rate used by the Cabinet for this year's budget. The revenues of the consolidated state budget increased by RON 5.99 billion.

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Financial News (3)

Number of real estate transactions down, mortgages up

The number of real estate transactions was 44,430 in July, down 17% year-on-year, according to data released by the Land Registry and Real Estate Advertising Agency (ANCPI). The annualized drop amounts to 9,068 transactions.

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Hidroelectrica earnings hit new all-time high

Hidroelectrica, the biggest electricity producer in Romania, posted RON 962 million worth of earnings for the first six months of the year, the highest ever for the company and a 34% increase year-on-year. The turnover jumped 17% to RON 1.99 billion, while the operating expenses fell 2% to RON 868 million.

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Romanians put another RON 7.8 billion in current and savings accounts

Romanians put another RON 7.8 billion in their current and savings accounts in the first half of this year, with savings surging to RON 78.4 billion, according to the National Bank of Romania (BNR). On the other hand, term deposits opened in the first half amounted to only RON 1.7 billion.

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Investment News (1)

Doğu Pres to built manufacturing plant in Iasi

Turkish automotive parts manufacturer Doğu Pres announced that it would build a production unit in Iasi for subcomponents that are integrated in diesel and gas injection systems. The greenfield investment project is worth EUR 10 million. The company chose Romania as the host country in order to simplify its access to the EU market.

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Legislative News (2)

Pension bill to be presented on Thursday

The pension bill will be presented to the public on Thursday, the beginning of one month of public debate. Afterward, the bill would be sent to the ministries for modifications, before reaching the Cabinet and the Parliament, according to Minister Lia Olguta Vasilescu. According to the bill, the pension point will increase to RON 1,265 in 2019 and 1,775 in 2020.

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New law for small franchises

The regulations governing franchise businesses, such as Shop&Go, Meli Melo or 5toGo cafes, will be changed through a new bill, avoiding the decree route that was initially considered. "The bill is currently being analyzed for approval by the ministries," said Radu Oprea, the Business Environment Minister.

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Politics (2)

President says budget adjustment unnecessary

President Klaus Iohannis said the budget adjustment has nothing to do with any need to consolidate the state budget and is instead a tool for punishing the institutions that do not obey the Social Democratic Party (PSD) by resorting to a sort of budget sabotage.

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Minister of Justice: The next DNA head should not be the beneficiary of preferential promotions

The Minister of Justice, Tudorel Toader, stated that the next DNA head should not come recommended by some person or other and should not be the beneficiary of preferential promotions. The Minister urged all prosecutors who are confident of their management skills and meet the legal requirements to take the chief-prosecutor test.

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