Daily Newsletter - 21 September 2018


Macroeconomic News (3)

Tradeville: Romania could remain leader of dividend index

Stock market broker Tradeville thinks the Romanian market could remain leader of the international average dividend index. The 13 companies that make up the BET index paid a total of RON 6.8 billion in dividends last year. Tradeville expects this year's dividends to amount to RON 5.62-6.8 billion.


National construction sector contracts

Romania reported the worst contraction of construction work in the European Union, both on a monthly and annual basis, according to data released by Eurostat on Wednesday.


Romanian energy sector needs between EUR 15 and 30 billion

Completing the new reactors of the Cernavoda Nuclear Power plant, building the Tarnita-Lapustesti hydro power plant, building the 600 MW unit at the Rovinari plant and building the Turnu-Magurele - Nikopol Hydrotechnical Complex are the main strategic goals included in the Draft Energy Strategy (PSE). The overall goals are clean energy, energy efficiency, universal access to electricity and heating, protecting vulnerable consumers and reducing energy poverty, competitive energy markets, modernizing the energy governance system, increasing the quality of energy education and continuous training of human resources, turning Romania into a provider of energy security and increasing the country's role on the regional and European markets, according to Minister Anton Anton.


Financial News (3)

EY: "Digital initiatives are uncoordinated"

All local banks are planning or running digital transformation projects, according to a study by EY. "Despite the results of local and international banks which adopted and implemented digital technologies early on, the local market has few ambitious transformation projects and the achieved value does not match the promised results because digital initiatives are uncoordinated," noted the study.


Patria Bank seeks RON 100 million in additional capital

The Financial Supervisory Authority (ASF) approved the launching of a stock offer by Patria Bank. The lender controlled by investment fund Axxess Capital will offer current shareholders the right of first refusal on 1 billion shares at RON 0.1 per share. The offer will be brokered by BRD's specialized division.


NPL rate up slightly in July

The non-performing loan rate reported by the national banking system climbed to 5.77% in July, according to the National Bank of Romania (BNR). Analysts say the upward trend will continue in the short term. "We expect the NPL rate trend to turn around after years of contraction, as the economy starts to slow down and the nominal cost of borrowing increases," said Andrei Radulescu, head of Macroeconomic Analysis at Banca Transilvania.


Legislative News (2)

Offshore bill amended

The Senate accepted two amendments to the offshore drilling bill, amendments that satisfy the demands of oil companies. The original bill demanded by Liviu Dragnea featured a series of benefits for Romania, but President Iohannis refused to sign it and sent it back to the Senate for review.


Cabinet issues adoption regulations amendment

The Cabinet issued on Thursday an amendment to the adoption regulations in order to streamline some procedures and extend the validity period of adoption fitness licenses from 2 to 5 years. The Cabinet's spokesman also said that the aid paid by the state for adopted children would also increase.


Politics (2)

PSD bracing for tense CExN meeting

The leaders of the Social Democratic Party (PSD) will gather today for a meeting of the party's National Executive Committee (CExN). The main issue on the agenda is the fate of Liviu Dragnea, following the release of an open letter signed by a number of party leaders and demanding Dragnea's resignation from his positions in the party and the Chamber of Deputies.


USR files 300,000 signatures for constitutional amendment

The Save Romania Union (USR) filed on Thursday the first batch of 300,000 signatures supporting the "No Criminals in Public Jobs" initiative to amend the Constitution. The party helped collected a total of 1 million signatures. USR President Dan Barna said the remaining signatures would be filed today in order to push the process along to the Parliament phase.


Social (1)

15% pay rise for severe or serious disability

People suffering from severe or serious disabilities will benefit from a 15% increase in their base salary for the work done during normal work hours, according to a decision issued by the Cabinet on Thursday. The type of disability is irrelevant to this decision.