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The Regions This Week
May 11, 2018 www.intellinews.com I Page 6
Southeast Europe
Romanian anti-corruption prosecutors are seek- ing a three-year sentence for the Senate speak- er, Calin Popescu Tariceanu, now on trial for per- jury, local media reported. A sentence is expected to be handed down on May 22. The perjury probe concerns an illegal land restitution case, which cost the Romanian state more than €135mn.
President Klaus Iohannis has sharply criticised the government’s first-quarter budget and again asked Prime Minister Viorica Dancila to step down and let a “more competent” person run the government.
Serbia’s Minister of Finance Dusan Vujovic
has submitted his resignation, citing personal reasons, news portal B92 reported , the same day an IMF mission arrived in Belgrade to begin talks on a new support programme.
The EBRD said on May 9 it expects Romania’s economy to expand by 4.6% in 2018. The fore- cast represents an upgrade from the 4.2% growth expected last November. Economic expansion is seen slowing down to 4.2% next year. Romania is expected to post the highest growth in the South- east Europe region both this year and in 2019.
The average net wage in Romania rose by 15.5% y/y in nominal terms in March to RON2,704 (€582), the country's statistics office announced. In real terms, the average wage rose 10.1% on the year. Real average pay in Romania has been growing at double-digit rates for two years now.
Serbia’s GDP growth will increase to 2.9%
in 2018 after having slowed to 1.9% in 2017
from 2.8% in 2016, according to the EBRD's latest Regional Economic Prospects report. The slowdown in 2017 was due to a summer drought, which badly affected agriculture and problems in mining and electricity generation.
Bulgarian retail sales (at constant prices) increased 2.3% y/y in March, slowing from the
3.1% y/y rise in February, as trade in automotive fuel contracted, according to statistics office.
Romania’s central bank on May 7 raised the benchmark interest rate by 0.25pp to 2.5%. The bank has now raised rates three times this year, by 0.75pp, to tame inflation, and came as no surprise. Analysts see room for yet another increase near the end of 2018.
The combined net profit of Albanian com- mercial banks fell by 16.4% y/y to ALL4.824bn (€37.8mn) at the end of the first quarter of
2018, central bank data showed. Banks' profits jumped by 138% y/y in 2017. Profitability was weak during 2016 and profits lower than in 2015.
The gross non-performing loan (NPL) ratio
of Albanian commercial banks fell to 13.43%
of the total loan portfolio in March, compared to 17.44% in the same month last year, according to central bank data released on May 4.
German healthcare solutions company B. Braun is starting construction works at its €120mn infusion solutions production facility in Romania, zf.ro reported. The Compass (Complex for Production, Administration, Shared Services and Regional Supplies) project will be located in Timis county, in western Romania.
Romania’s national road company CNAIR said on May 8 it has awarded a RON750.8mn (€161.4mn) contract, VAT excluded, to Turkey’s Alsim Alarko Sanayi Tesisleri ve Ticaret for the design and construction of an 18km stretch of the future Bucharest ring road. Bucharest has the most congested traffic in Europe.
Romania’s Banca Transilvania Financial Group has reached an agreement to sell its BT Opera- tional Leasing to Autonom for an undisclosed amount, the lender announced. The group owns Romania’s second-largest bank, Banca Transilva- nia (BT), and is exiting a non-core business.