News

Daily Newsletter - 11 January 2019

Summary

Macroeconomic News (4)

AFIR: EUR 1 billion target for PNDR 2020 funds

The 2019 target for attracting EU funds through the National Rural Development Program 2014-2020 is at least EUR 1 billion, which would raise the absorption rate to 53%, according to data provided by the Agency for Rural Investment Financing (AFIR) in a press release.

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Romanian households saw 30% increase in revenues, 35% increase in spending in Q3, 2018

Total household revenues in Romania grew by 30% in the third quarter of last year, reaching RON 4,454 (EUR 955) per month, but expenditures increased by 34.9%, to RON 3,891 (EUR 835), according to data published by the National Statistics Institute (INS) on Thursday. In the third quarter of 2017, the average household income was RON 3,426, while expenses were RON 2,885 per month.

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Mihai Ionescu, ANEIR: The trade deficit is exploding

Foreign trade was the main growth engine of the national economy in 2018, a good year for foreign trade, with a growth rate that exceeded the GDP, according to Mihai Ionescu, executive president of the National Association of Exporters and Importers of Romania (ANEIR) and co-president of the Export Council of Romania. However, the trade balance deficit "exploded" last year, putting Romania at risk of being saddled with an external debt of at least EUR 5-6 billion.

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Romania falls back to bottom of research spending

EU research and development investments reached 2.07% of the aggregated GDP of the 28 member states in 2017, i.e. EUR 320 billion, according to Eurostat data. This is a modest increase compared to 10 years ago, when the expenditures represented 1.77% of the GDP, and which does not allow for too much optimism regarding the chances of reaching the 3% target set for 2020. The Union remains far behind the world champions of research - in 2015, South Korea allocated 4.22% of GDP, followed by Japan (3.28%) and the US (2.76%).

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Financial News (4)

3M ROBOR falls to 2.88%

The three-month ROBOR rate, which is used to calculate the adjustable interest rates of RON-denominated loans, dropped to a seven-month low of 2.88%, according to BNR. The six-month rate fell to 3.22%.

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CEC Bank launches flexible retail saving product

CEC Bank, the biggest state-owned bank, announced the launching of a flexible saving product for retail clients. The 12-month deposit features an interest rate of 2%, plus 0.25% for those who open it via alternative channels.

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Dan Suciu: BNR's role is to attenuate excessive shifts

The National Bank's role is to attenuate the excessive shifts that could appear on the forex and inter-bank markets, especially since the new measures coming into force this year are impacting both markets, according to BNR spokesman Dan Suciu.

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PSD points finger at BNR

The Social Democratic Party (PSD) sent a message to the National Bank of Romania (NBR), dumping on the latter all the responsibility for the stability of the exchange rate. "The exchange rate is not the responsibility of the Government and cannot be determined by government action. The National Bank is the only institution that can and has the duty to ensure the stability of the foreign exchange rate," reads the PSD statement

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Legislative News (1)

Gheorghe Stan: The rapid flow of legislation changes makes it hard to put them into practice

The deputy chief inspector of the Judicial Inspectorate, Gheorghe Stan, a candidate for the head of the Judiciary Criminal Investigation Department (SIIJ), said the rapid flow of legislation changes makes it hard to put them into practice.

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Politics (2)

EC comes to Bucharest

European Commission President Jean-Claude Juncker and the College of Commissioners came to Bucharest last evening to mark the official beginning of the Romanian presidency. Jean Claude Junker held joint meetings and statements with President Klaus Iohannis and Prime Minister Viorica Dancila.

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Dancila renominates Vasilescu and Draghici

Prime Minister Viorica Dancila has renominated Olguta Vasilescu and Mircea Draghici for the positions of Ministers of Transport and Regional Development. According to the PM, these nominations comply with all the conditions stipulated by the Constitution and the applicable organic laws.

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