Press Review - February 15, 2019

02.15.2019 By Oana Gavrila

Leu Loses 0.03% Vs Euro, Hits 10-Month Low Vs US Dollar

The Romanian leu lost 0.03% on the day to the euro, standing at 4.7451 lei per euro Thursday.

Against the US dollar, quoted indirectly on the Romanian market, the leu stood at  4.2100 units Thursday, the lowest it sank since April 2017.

The leu also lost ground against the Swiss franc, standing at 4,.743 units Thursday from 4.1674 units Wednesday.

Three-Month Money Market Rate Hits 3.17% Thursday

The three-month money market interest rate used to calculate interests for consumer loans in lei, grew to 3.17% a year on Thursday, from 3.15% a year on Wednesday, central bank data showed.

At the beginning of the year, the three-month rate stood at 2.99%. Back in February 2018 in stood at 2.06%.

The six-month rate, which is used to calculate interests on leu-denominated mortgage loans, stayed at 3.34% a year on Thursday and the nine-month rate remained unchanged at 3.46%.

The twelve-month rate grew to 3.52% Thursday from 3.51% Wednesday.

Hungarian Minority Party To Vote in Favor of 2019 Budget Bill

The leader of Romania’s main Hungarian minority party UDMR, Kelemen Hunor, said Thursday the party’s lawmakers will vote on the 2019 state budget bill if submitted in accordance with the report issued by the Parliament’s budget-finance committee.

“If nothing changes today or tomorrow as votes are cast on the individual bill provisions and chapters during debates, then we will support the budget bill in the final vote (…) At this time, if things stay as approved in the report prepared by the budget-finance committee, this budget can be adopted,” the UDMR chairman said.

Hunor also pleaded for fast adoption of the budget, which has been delayed for the better part of two months.

Romania's government adopted the 2019 state budget plan a week ago. The budget is drafted on an economic growth projection of 5.5%, which critics said is overly optimistic, and targets a deficit of 2.55% of gross domestic product.

The built is currently under debate in Parliament and a final vote is scheduled for Friday, February 15.

Parliament Approves Budget Amendment Raising Child Allowances

Romania's Parliament on Thursday approved an amendment to the state budget bill raising state allowances for children aged 2-18 to RON150 a month from the current RON84 starting March 1.

The amendment submitted by the opposition Liberal Party also increases allowances for children between one month and two years of age to RON300 a month from the current RON200. The Labor Ministry’s budget would be supplemented with a total RON2.13 billion to amount for the increases.

The amendment was passed with 123 votes for and 119 against after the ALDE group requested a second vote due to technical reasons.

Ruling coalition party leader Liviu Dragnea said raising child allowances would push the budget deficit to 2.76% of GDP. The government targets a deficit of 2.55% of GDP in 2019.