News

Daily Newsletter - 12 October 2018

Summary

Macroeconomic News (3)

Car sales fall in August

The turnover reported by automotive dealers (including motorcycles) increased by 0.8% in August, compared to the corresponding month of 2017, while services jumped 4.8%, according to data released by the National Statistics Institute (INS) on Thursday. By comparison, the turnover growth rate reported for July was 12.7%.

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EUR 10 billion lost to talent deficit every year

Romania loses 6% of its GDP every year because of the talent deficit. The availability of skilled personnel depends on the free circulation of labor, including the ease of obtaining work permits for non-EU citizens, and education systems that provide adequate training, according to a PwC report.

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Vegetable prices kept CPI above 5% in September

The annual inflation rate stayed above 5% in September, following a marginal improvement of the monthly performance compared to September, 2017. Around half of the inflation rate was the result of a significant increase in the price of fresh and canned vegetables (+7.08%).

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Financial News (3)

BNR understood debtor discrimination made no sense

The new borrowing regulations will no longer differentiate between mortgage clients and consumer loan clients, from the point of view of the maximum indebtedness rate. The National Bank of Romania (BNR) was thinking of capping the indebtedness rates at 40% of revenues for mortgages and multiple loans and at 25% for consumer loans, according to draft regulation leaked in June. BNR has since reconsidered and wants a 45% cap for first loans and a 40% cap for multiple loans.

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Top three local banks post returns far above EU average

Banca Transilvania, BCR and BRD reported average returns on equity of more than 21% halfway through this year, three times above the EU average, according to the European Banking Authority. The NPL rate has continued to fall, albeit at a lower pace compared to previous years. Hungarian banks logged an average return on equity of 18%.

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"Invest in Yourself" loans ready

Prime Minister Viorica Dancila announced that the personal development loans promised under the "Invest in Yourself" program would be available at CEC Bank beginning on Monday. "Today, we'll sign all the documents needed to get in motion this program designed for Romanians who need money in order to access better professional training," said PM Dancila.

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Investment News (2)

Sanador completes EUR 20 million oncology center

Sanador, one of the biggest players of the national market for private medical services, opened yesterday a new oncology center worth EUR 20 million. The center is integrated in the Sanador clinical hospital, which is located close to Bucharest's Victoriei Square.

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Romania's sole aluminium producer to receive USD 25 million in financing

Alum Tulcea, the only aluminium producer in Romania and one of the biggest in Central and Eastern Europe, will receive USD 25 million in financing in order to continue the investment program launched ten years ago with the purpose of reducing the company's carbon footprint. The funds are provided by the Black Sea Trade and Development Bank (BSTDB) and Garanti Bank Romania.

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Politics (2)

PM Dancila met EC secretary general

Yesterday, Prime Minister Viorica Dancila received Martin Selmayr, Secretary General of the European Commission, and Clara Martinez Alberola, Head of Cabinet to the President of the European Commission. The three officials met at the Victoria Palace to discuss the upcoming presidency of the EU Council.

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President Iohannis receives new ambassadors

President Klaus Iohannis received at the Cotroceni Palace the new ambassadors of Great Britain, Montenegro and Denmark. Andrew Noble, Søren Jensen and Goran Poleksić presented their letters of accreditation to the president.

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Social (1)

National child mortality rate is twice EU average

Almost 72 children aged 0 to 14 years died in Romania for every 100,000 children in 2015, according to data updated by Eurostat in September. The EU average was 34 deaths per 100,000 children.

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