Daily Newsletter - 20 November 2017


Macroeconomic News (4)

Tudose: The draft budget for next year will be ready in maximum ten days 

Prime minister Mihai Tudose stated Friday, at Baile Herculane, that the state draft budget for 2018 will be ready in maximum ten days and along with it the Government decision for increasing the gross minimum wage will be approved. "The national minimum salary will be raised as of 1 January. The growth will be included in the budget, it will enter into force on 1 January. The Government Decision will be approved along with the draft budget. In ten days maximum", said the prime minister.


Deficit in food trade increased by more than twice in the first eight months 

Romania's deficit in food trade rose to 820.9m euros in the first eight months of this year, being more than twice higher than the level recorded in the same period in 2016, Agerpres announces citing data provided by the Ministry of Agriculture and Rural Development. According to these data, food exports increased by 5.1% during January-August 2017, up to 3.818bn euros, while imports grew by almost 15%, totaling 4.639bn euros.


Exceptional economic growth in Q3. Romania surpasses the greatest power of the world. The economic growth in nine months is... 

GDP rose 2.6% in Q3 compared to Q2, in seasonally adjusted terms, while compared to the same period of last year the growth was 8.6% and 8.8% in unadjusted terms, the National Institute of Statistics announced. This is the highest quarterly economic growth since 2008. In nine months, GDP rose 7% in unadjusted terms and 6.9% in seasonally adjusted terms. Thus, according to INS, the seasonally adjusted GDP growth was 5.8% in Q1 2017, 6.1% in Q2 and 8.6% in Q3, compared to the same period in 2016.


BLOOMBERG ANALYSIS: Romania's economic growth outstrips China's, but the memories of 2008 crisis reemerge 

The last time when Romanian economy's growth rhythm outpaced China's was in 2008, little before the outbreak of the global financial crisis. Politicians enjoyed that success before Romania being strongly affected by the crisis, having to ask for international financial assistance of 20bn euros ($24bn), an analysis published yesterday by Bloomberg agency cited by Agerpres shows.


Financial News (4)

Prime minister Tudose says Isarescu must take care of Robor: What happens in banks I think you must ask Mr. NBR governor, he coordinating and having, at least theoretically, to take care of these fluctuations 

Prime minister Mihai Tudose stated Friday, at Baile Herculane, that Robor index had reached a historic minimum before beginning to rise, which had been inevitable, Tudose adding that Mugur Isarescu should "take care" of these fluctuations. "When we took over the office, there were talks that we will turn turtle in late August, that there will be no more money for wages. Then everybody recommended us to be gentler with certain economic operators, that revenge will also come. Robor could not decrease anymore. It reached a historic minimum in Romania. It could but grow. What happens in banks I think you must ask Mr. NBR governor, he coordinating and having, at least theoretically, to take care of these fluctuations", Mihai Tudose stated.


BECAUSE OF THE EXPENSES WITH BANCPOST'S SALE, Eurobank recorded 15m euros losses in the third quarter 

The Greek bank Eurobank recorded losses worth 15m euros in the third quarter because of the expenses related to the sale of Bancpost, according to the data published Thursday by the third big credit institution in Greece in assets, Reuters informs. Except these expenses, Eurobank, achieved a 61m euros profit in the third quarter, up 64% compared to the same period of last year, provided that provisions stagnated.


If NBFIs reduce AER, following NBR's requirement, clients may pay even more than now 

After the entry into force of Regulation 20/2017 imposing new capital requirements for non-banking financial institutions (NBFIs), the market actors begin to worry. Some of them will enter the Special Registry, others try to sell the loan portfolios, others look for funding solutions for clients under NBR rules. What happens if NBF's decide to grant loans like banks, with AER below 32.5%? The loan marks up even more than it is at present.


BCR loses a lawsuit with ANPC. Tribunal Bucharest rules the elimination of the reference interest of the bank and the administration commission from all contracts 

Tribunal Bucharest considers that Banca Comerciala Romana used abusive clauses in the contracts concluded before 2010 with natural persons and must eliminate the administration commission as well as the provisions entitling the bank to calculate the interest basing on the bank's reference interest. The decision is not final. The National Consumer Protection Authority brought an action against the largest bank in Romania more than three years ago in several files, but the courts passed the files from one to another, then the bank raised unconstitutionality exceptions, which delayed the trial.


Investment News (1)

Romgaz prepares investments worth 100m euros in the project from Caragele 

Romgaz will continue to develop the project from Caragele, the company investing about 100m euros in new exploitation and evaluation bores. Romgaz management has met the officials of the County Councils Buzau and Braila and the mayors from Caragele project area for finding common solutions so that the project can continue its development at a fast pace, with a positive impact on the communities from the area.


Legislative News (1)

"Non-transparent, without a public consultation": Employers ask for the withdrawal of the amendments brought to the law on social dialogue 

The employers' confederation Concordia asks for the withdrawal of the amendments brought to the law on social dialogue, considering that the measures go against the principles of predictability and social dialogue. Thus, companies react to the fact that the Emergency Ordinance no. 82/2017 emerged in Monitorul Oficial, obliging all the companies, regardless of the number of employees, through the quick amendment of the Law on Social Dialogue, to negotiate with employees "a collective working contract/agreement", for "applying GEO 79" providing the transfer of social contributions from the employer to the employee.


Politics (2)

PNL organizes protests against the Government, Monday, in the whole country 

PNL's county organizations will organize, Monday, as 17 o'clock, in the whole country, protests against PSD-ALDE Government, actions which, the leaders of the party say, are part of the information campaign launched in order to determine all parliamentarians, regardless of their political color, to vote for adopting the motion of no confidence and the demission of Tudose Government.


Cazanciuc (PSD): There is an agreement with the opposition on many things in the package of laws amending the justice laws 

The head of the Legal commission of the Senate, Robert Cazanciuc (PSD) stated Sunday, in a TV show, that there is an agreement with the opposition on many things proposed in the package of laws amending the justice laws, but the vice president of the same commission, senator Daniel Fenechiu (PNL), replied "Devil is hidden in details" and liberals will not give up on their belief that abuse of power must be regulated without a threshold.