BUCHAREST Romania's state pension system needs a complete overhaul focused on contributions and private funds to become sustainable, Finance Minister Florin Citu said in an interview with Reuters on Tuesday.
BUCHAREST, Dec 12 Romania's new liberal
government is pushing ahead with the biggest increase in
pensions in three decades as part of its 2020 budget amid
growing concerns the country will flout EU budget limits and
risk credit rating downgrades.
By Krisztina Than and Luiza Ilie
BUDAPEST/BUCHAREST, Nov 25 The Romanian leu
outperformed other currencies in Central Europe on Monday after
centrist President Klaus Iohannis won a second term on Sunday,
but analysts expect the country's swelling deficits might put
pressure on the leu going ahead.
While Iohannis' election with a strong popular backing is
seen reducing political risk, the Romanian government faces the
challenge of tackling a budget deficit expected to overshoot the
European Union's ceiling of 3% of economic output, while the
economy is slowing.
Romania's consolidated budget deficit could exceed 4% of
gross domestic product this year, well above target, if the
government doesn't quickly introduce additional fiscal measures,
Finance Minister Florin Citu has said. The current account
deficit is also on the rise.
"Investors have a lot to watch going forward, both in very
short-term and in the medium term," Raiffeisen said in a daily
"With presidential elections out of the agenda, the
government will have to make clear its plans regarding the
fiscal policy for 2020... Also, talks about early parliamentary
elections should emerge as a key point on the political agenda
starting as of this moment."
By 0847 GMT, the leu traded 0.1% higher on the day against
the euro at 4.7715, while other currencies were flat. The unit
has fallen 2.5% this year so far, the region's second-worst
performer after the Hungarian forint.
The forint has lost 4% so far this year and is
also drifting just off record lows past 336 versus the euro hit
in September, as the central bank sticks to its loose monetary
policy at home, and global jitters over trade wars and Brexit
continue to weigh on the currency.
"On Friday, the EUR/HUF exchange rate again approached 336
but bounced off from there and firmed to 334.40 this morning,"
Erste analysts said in a note. The forint has been see-sawing as
it has settled in its new, weaker ranges.
Better-than-expected manufacturing PMI data in the euro zone
- the key trade partner for central Europe's export-dominant
economies - lifted the mood on Friday but the region's
fast-growing economies are still expected to slow next year.
Poland, the region's biggest economy, could decelerate to
around 3% in 2020 from a robust 4.3% estimated for 2019,
Commerzbank analysts said.
"On this outlook, we find it reasonable that the central
bank expects inflation to remain tame and expects not to have to
tighten monetary policy through 2020. Such a policy stance is
neutral for the zloty, and would even turn supportive if the ECB
were to loosen its own stance," they added.
CEE SNAPSHOT AT
MARKETS 0947 CET
Latest Previous Daily Change
bid close change in 2019
Czech 25.4860 25.5000 +0.05% +0.87%
Hungary 334.4000 334.4900 +0.03% -3.98%
Polish 4.2980 4.2969 -0.03% -0.20%
Romanian 4.7715 4.7770 +0.12% -2.46%
Croatian 7.4330 7.4345 +0.02% -0.31%
Serbian 117.4700 117.5300 +0.05% +0.71%
Note: calculated from 1800 CET
Latest Previous Daily Change
close change in 2019
Prague 1086.09 1081.900 +0.39% +10.09%
Budapest 44000.91 44053.95 -0.12% +12.42%
Warsaw 2196.95 2188.24 +0.40% -3.50%
Bucharest 9753.01 9718.49 +0.36% +32.09%
Ljubljana 900.18 902.31 -0.24% +11.93%
Zagreb 2004.46 2003.27 +0.06% +14.62%
Belgrade <.BELEX15 762.09 764.32 -0.29% +0.05%
Sofia 549.29 551.22 -0.35% -7.60%
Yield Yield Spread Daily
(bid) change vs Bund change
2-year <CZ2YT=RR 1.3860 -0.0520 +201bps -6bps
5-year <CZ5YT=RR 1.2650 0.0570 +186bps +5bps
10-year <CZ10YT=R 1.4900 0.0140 +184bps +0bps
2-year <PL2YT=RR 1.4030 0.0040 +203bps +0bps
5-year <PL5YT=RR 1.8090 0.0170 +240bps +1bps
10-year <PL10YT=R 2.0800 0.0330 +243bps +2bps
FORWARD RATE AGREEMEN
3x6 6x9 9x12 3M
Czech Rep < 2.25 2.24 2.18 2.18
Hungary < 0.24 0.27 0.30 0.18
Poland < 1.73 1.73 1.71 1.71
Note: FRA are for ask prices
(Reporting by Gergely Szakacs; Editing by Rashmi Aich)
BUCHAREST Romanian President Klaus Iohannis is widely expected to win a first round of presidential elections on Sunday, with pledges to rekindle anti-graft efforts in one of Europe's most corrupt nations.
BUCHAREST The centrist minority government of Romanian Prime Minister Ludovic Orban won a vote of confidence in parliament on Monday, improving the prospects of filling a policymaking vacuum in Bucharest and the European Union.
BUCHAREST Romanian lawmakers will hold a vote of confidence on Monday for the centrist minority cabinet of Prime Minister-designate Ludovic Orban, the outcome of which risks extending a policymaking vacuum in the European Union.
BUCHAREST Romanians regularly stop Laura Codruta Kovesi in the street to shake her hand or to be photographed with the woman who for five years led the country's fight against corruption.
BUCHAREST Romanian Prime Minister Viorica Dancila's center-left government collapsed on Thursday after losing a no-confidence vote in parliament, raising the prospect of prolonged political uncertainty due to a fragmented opposition.
BRUSSELS/BUCHAREST Romania's former anti-corruption chief Laura Codruta Kovesi is set to become the European Union's first fraud prosecutor despite opposition from Bucharest after most member states backed her over of the French candidate.
BUCHAREST Floating above the turbulent politics of modern-day Romania, the biennial George Enescu Festival is a welcome relief for Bucharest's classical music fans, with performances not just in the main concert hall but on street corners and in bookstores.