Daily Newsletter - 8 February 2019


FIC (1)

EC warns of Decree 114 effects

The European Commission joined the CDR in issuing warnings about the effects of Decree 114.


Macroeconomic News (3)

Food and beverage industry slows down

More than 170,000 people work in the food and beverage industry, whose combined turnover exceeds EUR 10 billion. Food and beverage production grew 1.8% in the third quarter of 2018, two times lower compared to the first half of the year, according to market research firm data Food Drink Europe, which analyzes Eurostat data.


EC forecasts 3.8% growth rate for Romanian economy

Romania's economic growth rate will fall to 3.8% of GDP in 2019, according to the European Commission's winter forecast. Last year's growth rate was estimated at only 4% in 2018, compared to the 4.5% announced by the National Forecast Commission (CNSP) or the 5.5% on which the 2019 budget is built.


Bond auction ends successfully

The Ministry of Finance (MFP) sold RON 635.55 million worth of bonds yesterday, at a residual maturity of 2.7 years and an interest rate of 4%. The investors offered more than four times the initial target amount.


Financial News (5)

Andrei Rădulescu, Banca Transilvania: We expect the National Bank to keep the key rate at 2.5%

Banca Transilvania analysts expect the National Bank of Romania (BNR) to keep the key rate at 2.5% at Thursday's monetary policy meeting.


BNR board kept key rate at 2.5%

The National Bank of Romania's (BNR) board of directors decided at Thursday's monetary policy meeting to keep the key interest rate at 2.50% per year, while also maintaining the minimum mandatory reserves at their previous level, along with the 1.5% and 3.5% interest rates for the credit and deposit facilities.


BNR board to meet with MPs

The National Bank of Romania's (BNR) board of directors will appear before the Parliament on Tuesday, February 12, according to Governor Mugur Isarescu. The decision was taken in response to the invitation extended to Governor Isarescu by Senator Daniel Zamfir (ALDE).


Governor Isarescu: ROBOR is not a terrorist that must be caught

The uncertainties and risks associated with the inflation outlook arise from the new set of fiscal and budget measures that came into force on 1 January, as well as the failure to complete the draft budget, according to a press release issued by the National Bank of Romania after Thursday's board meeting.


BRD posted record earnings

BRD - Groupe Societe Generale logged RON 1.56 billion in earnings for 2018, up 10.6% from the previous year, according to CEO Francois Bloch. The banking side accounted for RON 1.54 billion in earnings, up 12% year-on-year. The board proposed a gross dividend of RON 1.64 per share.


Investment News (1)

Oradea City Hall invests RON 36 million on underground parking

The Oradea City Hall is investing approximately RON 36 million (EUR 7.6 million) in the construction of a parking spanning three underground levels and able to accommodate 460 cars. The construction works will be carried out by Bihor Constructions and must be completed this year.


Politics (2)

President rejects Vasilescu's nomination again

President Iohannis sent Prime Minister Viorica Dancila a letter detailing the reasons why he refused to appoint Lia Vasilescu to the position of Minister of Regional Development and Public Administration.


Vasilescu to file criminal complaint against President Iohannis

The Government will notify the Constitutional Court after President Klaus Iohannis refused to appoint Lia Olguta Vasilescu as the Minister for Development. Lia Olguta Vasilescu will file a criminal complaint for abuse of office powers.