News

Daily Newsletter - 8 October 2019

Summary

Macroeconomic News (3)

Construction materials producers say 2019 resembles 2007

The construction market saw a 26% increase in the first seven months of this year, compared to the corresponding period of 2017, according to the National Statistics Institute (INS). Activity is expected to remain constant until the end of the year, but 2020 could bring fresh problems for developers and materials producers.

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Financing needs up RON 4 billion

The state's financing needs increased by RON 4 billion this year, according to a paper released by the Ministry of Finance (MFP). The government expects it will have to borrow RON 76 billion from local and foreign investors in 2019, compared with the previous figure of RON 72 billion. The state needs RON 29.1 billion to finance the budget deficit, as well as RON 46.9 billion to roll over the public debt, according to the 2019-2021 Public Debt Management Strategy.

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Romanians spend little on investment

The average total monthly income per household amounted to RON 4,764 in the second quarter of this year, while the average total expenditures reached RON 4,049 per household, representing 85% of the total income, according to the National Statistics Institute (INS). The total monthly average income per individual was RON 1,838, while the total average spending was RON 1,562.

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Financial News (4)

Provident Financial saw huge drop in clients

The changes to the regulations governing non-financial banking institutions made by the National Bank of Romania (BNR) have led Provident Financial to rejecting around 70% of loan applications, while the portfolio of clients plunged from 347,000 in 2016 to around 184,000 this year, according to CEO Florin Balcan.

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Pillar 2 assets up 26%

The aggregated value of the assets held by the entire private pension system reached RON 57.43 billion in the first half of 2019, up almost 26% year-on-year, according to the Financial Supervisory Authority (ASF).

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"We are encouraging RON-denominated savings because our retail loans are denominated exclusively in RON"

Raiffeisen Bank, the fifth biggest lender in Romania, has decided to stop offering deposits denominated in euros or US dollars. Over the course of this summer, the bank revamped and simplified its entire range of savings products.

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Finance employees very interested in new jobs

Romanians are more and more interested in changing their jobs, with the number of applications jumping 15% compared to August, according to a survey by online recruiting platform BestJobs. "Finance&accounting, engineering and transport jobs had the highest number of searches in September, with more than 74,000 total searches, up 24% on a monthly basis," according to BestJobs.

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Investment News (1)

Shopping City Targu-Mures to open in March, 2020

Investment fund NEPI Rockcastle will inaugurate Shopping City Targu-Mures in March, 2020. The EUR 70 million shopping center is the biggest recent investment in the Mures county.

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Legislative News (2)

Stamps eliminated from many state institutions

As of July 2017, companies and individuals are no longer required to have stamps on any document required in relation with public institutions, including even contracts with the state. Today, President Iohannis signed a bill that waives the use of stamps on marital status documents, contracts and other official documents. The stamp will be mandatory for the state only if it is specifically demanded by law.

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All schools built before 1978 to undergo earthquake evaluation

President Klaus Iohannis signed, on Monday, the amendment to Decree 20/1994 regarding the measures needed to reduce the risk of buildings collapsing during an earthquake. The bill stipulates that all schools built before 1978 must be evaluated and classified according to their seismic risk by the end of 2021. Failure to initiate, as well as any attempt to hinder the procedure may result in fines.

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Politics (1)

USR to vote against Cabinet

Dan Barna, leader of the Save Romania Union (USR), said USR MPs will vote against Prime Minister Viorica Dancila. However, Barna added that USR would not support a new cabinet made of the same people who brought the country to its present situation.

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Social (1)

One in three Romanians exposed to poverty and social exclusion

One in three Romanians is still exposed to the risk of poverty and social exclusion, even though Romania made it a goal to eradicate extreme poverty by 2030, according to the World Vision Romania Foundation. Four years after the adoption of the Global Agenda 2030 and the Sustainable Development Goals (ODD), statistical data show that Romania is far from achieving its 2020 targets, while the 2030 targets seem unreacheable, according to the foundation.

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