Daily Newsletter - 13 November 2018


FIC (1)

Multinationals criticize the government's decision to increase the minimum salary!

  The Coalition for Romania's Development (CDR) criticized the Cabinet's decision in harsh terms, saying that such a measure could affect the productivity and economic development of Romania. This change will also lead to rising prices in many sectors, warns CDR.

Minimum salary increase by decree annoys foreign investors


Macroeconomic News (3)

IMF advises Government to reconsider salary increases

The public sector salary increases and the planned changes to pensions should be reconsidered in light of any possible negative implications on the country's fiscal sustainability and long-term economic growth, according to a press release from the International Monetary Fund. An IMF team led by Jaewoo Lee visited Bucharest between November 6 and 12 to discuss recent macroeconomic developments and policy developments.


October inflation drops to annual low

The annual inflation rate dropped to 4.25%, the lowest level recorded this year, although the October rate was +0.52%, the third highest figure after January (+0,78%) and April (+0.54%). The explanation for this small paradox is the favorable base effect induced by very poor performance from October, 2017 (+ 1.28%).


Top economic sectors by hiring

Local companies reported an average of 4.1 million employees for 2017, this being the only indicator in the balance sheets of the 700,000 companies that did not return to the 2008 level, according to data from the Trade Register.


Financial News (3)

BNR published retail borrowing rules

The National Bank of Romania (BNR) published in the Official Gazette the amendments to the regulations on retail borrowing, which introduce a cap on indebtedness. The document also shows on what terms the banks and non-banking financial institutions will be able to grant loans that exceed the caps.


Isarescu floods market with liquidity again

In order to stop the growth of the ROBOR indices and to balance the flow of liquidity on the interbank market, BNR resorted yesterday to the tenth repurchasing operation of this year, amounting to RON 5.3 billion, the third lowest value this year. BNR used yesterday's transaction to roll last week's operation RON 12.3 billion, one of the biggest this year.


OTP Romania earnings almost doubled

OTP Bank Romania reported after tax profits worth RON 68.7 million (EUR 15.09 million) for the first nine months of 2018, almost twice higher compared to the corresponding period of last year, according to the consolidated financial report.


Investment News (1)

Government loses half of European funding for Otopeni subway line

Romanian authorities failed to clarify the concerns of the European Commission regarding the M6 subway line to the Henri Coanda Airport in Otopeni and will receive only half of the available EU grants. The Ministry of Transport announced that the eligible funding approved under the Operational Program for Infrastructure for the years 2014-2020 is only RON 2.776 billion, while the total value of the project is RON 6.345 billion.


Legislative News (2)

Employers want Cabinet to look into tourism act procedure

Tourism employers asked Prime Minister Viorica Dancila on Monday to look into the legality of the public debate regarding the draft Tourism Act and the draft travel package and services bill launched by Tourism Minister Bogdan Trif.


President signs offshore bill

Liviu Dragnea, President of the Chamber of Deputies, said today, referring to the Liberals' complaint about the lack of a comma in an important article of the offshore law, that President Klaus Iohannis had already promulgated the law and the Standing Bureau can no longer change it.


Politics (2)

Mayor Firea blasts Liviu Dragnea

Bucharest Mayor Gabriela Firea said tonight she expected "more courage, especially political courage" from Liviu Dragnea. Firea accused Dragnea of abusing the power of his office by meeting with the district mayors to discuss the administrative reorganization of the city.


Iohannis: We are not prepared for EU Council presidency

President Klaus Iohannis said at a meeting of the Association of Romanian Municipalities on Monday that Romania is not ready to take over the presidency of the EU Council and that the Dancila - Dragnea Cabinet, which he called an "accident of democracy", should be replaced.


Social (1)

The demographic decline increased in September

Romania's population continued to decline for demographic reasons and the decline accelerated in September, when 1,671 residents were lost, compared to 1,248 in the corresponding month of last year, mainly due to declining birth rates, according to data released on Monday by the National Statistics Institute (INS). In August, Romania's population continued to decline for demographic reasons, but the decline rate slowed down: 1.430 inhabitants lost, compared to 3,069 in the corresponding month of last year.