News

Daily Newsletter - 18 January 2019

Summary

Macroeconomic News (4)

Strike leads to energy crisis

Romania hasn't face such an energy crisis in about 30 years, especially since the country has every natural resource needed to produce electricity. However, Romania had to import about 1,600 MWh of electricity yesterday morning to meet the 9,000 MWh consumption, even though the weather is not particularly cold. The collapse was triggered, according to experts, by a coal shortage caused by the C.E. Oltenia miners strike.

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Estonia and Romania had highest inflation rate in EU

The annual inflation rate declined in December to 1.6% in the eurozone and 1.7% in the European Union, from 1.9% and 2%, respectively, in the previous month. Estonia and Romania had the highest inflation rates in the EU, according to data released by the European Statistics Office (Eurostat) on Thursday. The figure provided by Eurostat is similar to the analysts' estimates, but below the target considered by the European Central Bank.

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Market services turnover up 1.1%

In November 2018, the turnover for market services provided mainly to corporate clients increased in nominal terms by 1.1%, compared to the previous month, according to data published by the National Statistics Institute (INS).

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MFP borrows EUR 83.5 million

The Ministry of Finance has started borrowing euros from local banks, after the latest auctions of RON-denominated state bonds brought in much less than expected.

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Financial News (3)

Bank asset tax hurts economy

The bank asset tax introduced by the Government through Decree 114 threatens the stability of the banking industry and, by extension, of the entire economy. The lack of predictability and clarity in taking such a decision may push some banks into insolvency.

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Over 1,000 loans granted under Invest in Yourself program

The guarantee budget for this year's "Invest In Yourself" program was set at RON 1 billion, according to a decision approved at the latest Government meeting. Last year, more than 1,000 guarantees were issued, worth a combined RON 36.42 million.

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Banking stocks rally

BET - the main index of the Bucharest Stock Exchange (BVB) -, which tracks the 15 most traded shares, climbed 1.5% in Thursday's session and marked the third consecutive growth session, as the "brutal" sales at the beginning of the week are losing momentum. Market liquidity was low. The value of the transactions made on January 17 was RON 22.6 million, the lowest since the beginning of 2019, according to BVB data.

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Legislative News (1)

Decree 114 will increase construction companies' expenses

Decree 114 will have a direct impact on the construction industry, bringing tax benefits to employees, as well as a cost increase for companies with more than 50 employees, according to Cromwell Evan Global, an independent tax service provider and business consultancy.

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Politics (2)

Codrin Stefanescu complains of investigations

PSD is currently the most hunted party in Romania, after 1,187 mayors, deputy mayors and county and municipal councilors became the target of some kind of investigation, PSD Secretary General Codrin Stefanescu said in Resita on Thursday.

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President Iohannis sends explanation

President Klaus Iohannis sent a letter to Prime Minister Viorica Dancila, in which he argued that the nomination proposals for the Ministry of Development and the Ministry of Transport, Lia Olguta Vasilescu and Mircea Draghici, still fail to prove they meet the legality conditions, so they can be confirmed.

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Social (1)

More than 280,000 people found jobs in 2018

Almost 283,000 people were employed in 2018 through the National Employment Program (PNOFM), according to the National Employment Agency (ANOFM).

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