Daily Newsletter - 9 May 2019


Macroeconomic News (5)

EBRD revises Romanian economy outlook down

The European Bank for Reconstruction and Development published yesterday, May 8, the latest forecast regarding Romania's economy. According to the EBRD, this year's growth rate will be 3.2%, down from the 3.6% estimated in November.


Foreign borrowing cap to be raised

The Cabinet discussed on Wednesday the proposal to raise the foreign borrowing cap by EUR 4 billion, up to a total of EUR 31 billion. The foreign borrowing program approved for 2019-2020 has already reached the upper limit. The Ministry of Finance wants to issue new eurobonds worth around EUR 8.25 billion.


More than 20% of Romanian exports went outside EU

Romania's FOB exports amounted to EUR 5.51 billion in January, 21.3% of them going to countries outside the European Union, according to the National Statistics Institute (INS). The total value of exports to EU member states jumped 4.6% to EUR 4.33 billion. The biggest non-EU export destinations were Turkey (EUR 138.4 million), the Russian Federation (EUR 89.3 million) and Serbia (EUR 72.8 million).


MFP wants lower VAT rate, less red tape at ANAF

The Ministry of Finance (MFP) put forward on Wednesday three measures regarding the lowering of the VAT rate for food products and the reduction of red tape at the National Fiscal Administration Agency (ANAF). The measures focus on eliminating the "inequalities resulting from the enforcement of provisions that make it mandatory for private individuals to pay health insurance contributions at the minimum gross salary, even when they earn less".


Romania has highest labor tax burden in EU

Romania has the highest tax burden for employees of the 26 countries (European Union members, European Economic Space members, and Switzerland) analyzed by consulting firm KPMG. More than 2.1 million of the 6.39 million labor contracts registered in Romania feature the minimum salary.


Financial News (3)

Credit Europe Bank Romania logged RON 53 million in 2018 earnings

Credit Europe Bank Romania reported RON 53 million in earnings for 2018, up 13% compared to the previous year. The bank saw the value of credit card loans and corporate loans increase, while operating expenses fell.


Romania to issue new official eurozone accession target

The Cabinet will send the European Commission the updated version of the Convergence Program for 2019-2022. Prime Minister Viorica Dancila announced that the new version features a commitment to join the eurozone in 2014. This is the first time in many years that the government puts forward a new date.


Banca Transilvania posts RON 507.4 million in Q1 earnings

The Banca Transilvania financial group reported RON 507.4 million worth of consolidated earnings for the first quarter of this year. The banking business accounted for RON 436.07 million worth of earnings, according to the financial report send to the Bucharest Stock Exchange (BVB). The group's assets amounted to RON 79.7 billion.


Investment News (2)

Nuclearelectrica, Chinese partners ink deal

Nuclearelectrica (SNN), China General Nuclear Power Corporation (CGN) and CGN Central and Eastern Europe Investment have signed the preliminary investor agreement for continuing the "Reactors 3 and 4 of CNE Cernavoda" project. The agreement was initially approved by the two sides on April 10.


Bicycle lanes on 21 Bucharest streets

The state will spend RON 44.5 million on setting up bicycle lanes on 21 streets in Bucharest, totaling 48 kilometers of new lanes, according to the Ministry of Environment. The proposal was adopted at Wednesday's Cabinet meeting. The project will also include 420 new parking spots for bicycles.


Politics (2)

Romania hosts historical EU summit

Sibiu will be the capital of Europe for one day, a good opportunity for Romania to improve the national image tarnished by four and a half month of underwhelming performance at the helm of the European Council. The summit will be attended by 27 heads of state and government, including President Emmanuel Macron, Chancellor Angela Merkel, EC President Jean-Claude Juncker and European Parliament President Antonio Tajani.


PSD blasts presidential criticism

Representatives of the Social Democratic Party (PSD) said President Klaus Iohannis had "missed the chance to behave decently before the European leaders gathered for the Sibiu summit" and that "the gratuitous and unprovoked attacks on the government of his own country" shows a lack of basic notions of political behavior.


Social (1)

Bulgaria and Romania have highest severe material deprivation rates in EU

6.2% of the European Union's population suffered from severe material deprivation last year. The highest figures were reported by Bulgaria (20.9%) and Romania (16.8%), according to data released by Eurostat on Wednesday. By comparison, Sweden, Luxembourg and Netherlands logged severe material deprivation rates below 3%.