August 4, 2015
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Newsroom, 04.08.2015, 12:00
The National Bank of Romania has today announced it will keep the monetary policy interest rate at its current level, 1.75% per year. During todays monetary policy meeting, central bank officials also decided to keep the current levels of the minimum compulsory reserves for liabilities in the Romanian and foreign currencies of commercial banks, although economic analysts were expecting them to be cut. Meanwhile, the National Bank announced on Monday that currency reserves dropped by nearly one billion euros last month, as compared to June, and reached 29.1 billion euros. The fall was primarily triggered by the repayment of a euro bond issue by the Ministry for Finances, due on July the 29th. Romanias gold reserve stays at 103.7 tonnes, worth close to 3.3 billion euro.
In Romania, the drought of the past few weeks has caused farmers to lose over 2 billion euros and will push the prices of Romanian products up, says the head of the Romanian League of Farmer Associations, Laurentiu Baciu. In turn, Secretary of State with the Agriculture Ministry Daniel Botănoiu, said the drought destroyed more than 860,000 hectares of crops and damaged at least one-quarter of this years agricultural yield. He also said farmers requested aid from the Ministry to make up for the losses, but that in order to initiate the aid mechanism losses must be over 30% for each particular crop. Farmers warn that the drought also affects animal farms and the vegetable and fruit production. High temperatures and scarce rainfalls will also be reported in August as well.
The PM of the Republic of Moldova, Valeriu Streleţ, while on a meeting with the US Ambassador to Chisinau, pleaded for a strengthened strategic dialogue with the USA, Radio Chisinau reported on Tuesday. Streleţ mentioned in particular the investment projects implemented in Moldova with the support of the American partners. In turn, the American diplomat hailed the formation of a new cabinet and reiterated Washingtons support for Chisinaus continued efforts to implement reforms, tackle corruption, and reform the economy. Since 1992, the USA has granted nearly 1.2 billion US dollars to the Republic of Moldova in financial assistance schemes. Of this, 20 million dollars were allotted by the American government last year alone.
The French Interior Minister, Bernard Cazeneuve, requested additional support from the British authorities to dismantle human trafficking networks, as thousands of immigrants are trying to reach Britain from France, via Calais. In an interview to the daily La Croix, Cazeneuve says this year the cooperation between the intelligence services and police forces of the two countries enabled the dismantling of 17 trafficking networks. Bernard Cazeneuve also emphasised that the migration crisis requires a global solution and cooperation with the migrants home countries.
The Athens Stock Exchange has opened today 4.5% down, after having closed on Monday with a record fall of 16.2%, five weeks after its operations had been suspended. Meanwhile, representatives of the international lenders carry on negotiations with the Greek authorities on a third financial assistance programme worth up to 86 billion euro. Technical negotiations are expected to complete by August the 12th, and the final deal to be signed by August the 18th. In exchange for the bail-out money, Greece has agreed to implement reforms, including a substantial pension adjustment, a VAT increase and measures to deregulate prices and curb public spending.
The US Secretary of State John Kerry is in Singapore today, as part of his South-East Asian tour due to conclude on August the 8th and designed to garner support for the Trans-Pacific free trade agreement, an economic priority for President Barack Obama. On Wednesday and Thursday Kerry will take part in Kuala Lumpur, Malaysia, in a meeting of the foreign ministers of the countries affiliated to the Association of Southeast Asian Nations, viewed as a privileged partner of Washington, particularly counterbalancing Chinas regional ambitions. On Monday, in Doha, Qatar, John Kerry discussed with his counterparts from the Sunni Gulf countries. The American official tried to address the concerns triggered by the signature, on July the 14th, of a historic deal between Iran and the world powers with respect to Irans nuclear programme. Qatars Foreign Minister said the Arab countries in the Gulf are confident that the agreement will enhance the security of the area.
