Press Review - August 14, 2018

08.14.2018 By Oana Gavrila

Three-Month Money Market Rate Drops To 3.28%

The 3-month money market interest rate used to calculate interests for consumer loans in lei fell to 3.28% a year on Monday, from 3.30% a year on Friday, central bank data showed.

The six-month money market rate, which is used to calculate interests on leu-denominated mortgage loans, kept falling on Monday, down to 3.43%, from 3.44% on Friday.

The nine-month interbank rate, which is used to calculate interests on loans in lei attracted by commercial banks from other commercial banks for a nine-month period, dropped to 3.49% on Monday, from 3.50% on Friday.

The twelve-month index also saw a decline, down to 3.55% on Monday.

Romania's Current Account Deficit Widens to EUR3.781B in 1H

Romania's current account balance posted a deficit of EUR3.781 billion in the first half of 2018, compared with a deficit of EUR3.526 billion in the same period last year, central bank data showed Monday.

Foreign direct investment stood at EUR2.194 billion in the first half, compared with EUR1.695 billion in the same period last year.

Romania's total external debt grew by EUR1.894 billion from end-December 2017, standing at EUR95.371 billion at the end of June. Long-term debt stood at EUR66.902 billion, accounting for 70.1% of the total external debt.

Social Democrats Accuse Romanian President Of Inciting Social Anarchy

Romania’s ruling Social Democratic Party (PSD) issued a statement Monday accusing President Klaus Iohannis of inciting the violent incidents at Friday night’s anti-government rally in Bucharest.

PSD accused the president of inciting “social anarchy” and encouraging violent persons to unlawful excesses during protests.

The statement describes Romania as being “more divided than ever” and states Iohannis violated his constitutional attributions through his role in this.

“Romanian President Klaus Werner Iohannis is the main culprit for the current state of the Romanian society. Now, following his latest manifestations inciting to social anarchy, it is more obvious that Iohannis didn’t want, didn’t know how to or couldn’t be the president of all Romanians, the institutional moderator, the neutral referee enshrined by the Constitution. Instead of being the elected one to unify us, Iohannis chose to become the Divider,” the social-democrats added.

President Criticizes Lack Of Accountability Following Riot Police Violent Rally Intervention

Romanian President Klaus Iohannis criticized Monday the authorities’ response to the way riot police intervened at Friday’s protest in Bucharest, which left more than 400 people in need of medical assistance.

Iohannis pointed towards a lack of accountability among top officials, saying that “in any other country there would have been at least one resignation until now.”

“Three days have passed and no one has been held accountable for what happened Friday in Victory Square. In any responsible country, we would have had at least one resignation. No one is taking political responsibility for what happened. Why did we get here? Because a legitimate protest degenerated into street violence, with aggressive manifestations. Wouldn’t those who want to kneel the judicial system and the fight against corruption wish to create social tensions? What will happen if they continue to silence Romanian voices through violence?” Iohannis said in a televised statement.