The state will lose RON 100 billion in revenues over the next four years by implementing the new Fiscal Code, three times higher compared to the Government's calculations. Daniel Anghel, a representative of the Foreign Investors Council, said that these measures must be sustainable from the budget's point of view.
The cost of long-term financing rose above 3% in March, leaving behind the all-time lows reported in the first two months of this year. The average yield of 10-year notes rose from 2.81% in February to 3.09% in March, while three-year bonds went from 1.94% to 2.08%. The trend had been anticipated by some analysts.
The Cabinet's lack of credibility undermines a good idea: reducing the general VAT rate from 24% to 20% in 2016 and the food VAT rate to 9% for meat, fish, vegetables, fruit, milk and eggs. Despite the stains covering this Cabinet's reputation, the entrepreneurial class should back the VAT reduction as featured in the new Fiscal Code.
The draft Fiscal Code and Fiscal Procedure Code will be very difficult or even impossible to observe if implemented as drafted, according to Dan Schwartz, Managing Partner of RSM Scott. Among the problems indicated by Schwartz is the mandatory daily reporting of all transactions above EUR 5,000 by banks, casinos, notaries public, real estate agents and consultants.
The expansion of the world's shadow banking system is a reaction to the financial crisis and the restrictions imposed on banks. It's neither good, nor bad, but necessary and the biggest challenge is to monitor, regulate and control this system, according to Paul Smith, President and CEO of the CFA Institute.
The banks paid at the end of February an average interest rate of 2.4% for new RON-denominated retail deposits, an all-time low and down approximately 1 pp on an annual basis. The highest interest rates reported this year came from the Romanian International Bank (3.65%), TBI Bank, Marfin Bank, Piraeus Bank (3.6%).
Alpha Bank Romania was a strong supporter of the Prima Casa program. Since the launching of the program in 2009, Alpha Bank has granted more than 10,000 loans worth a combined EUR 500 million. The bank will continue to be involved in this program in 2015.
Autoliv Romania, a manufacturer of automotive safety systems, the local subsidiary of Swedish group Autoliv, is planning to expand the Sfantu Gheorghe steering wheels plant. The company had already applied for an environment permit with the Covasna county APM.
The Bistrita-Nasaud County Council launched a EUR 8 million project for modernizing and buying new equipment for a Bistrita polyclinic. More than 100 doctors' offices and 50 administrative rooms would be modernized and the necessary medical equipment will be purchased. The imaging system will be connected to that of the County Emergency Hospital.
The Bacau Town Hall will spend more than EUR 12 million on turning a Bistrita river island into a park complete with a beach, aqualand, hothouses for flowes, outdoor theater and fishing and grilling spots. The park will occupy 8.7 hectares of land.
The victims of malpractice will not be paid more than EUR 30,000 as compensation and the acts will fall under the statue of limitations unless a complaint is filed within 12 months, according to a bill passed by the Senate. The Ministry of Health has already issued a negative report regarding the bill, but is powerless to stop it. Experts say that the bill was written for the insurance companies, especially since these companies had repeatedly refused to pay the damages set by the courts.
Eugen Teodorovici and Marius Nica were sworn in this morning as Ministers of Finance and European Funds. Teodorovici sits on the boards of CEC Bank and the European Investment Bank. The ceremony was attended by President Klaus Iohannis, the Presidents of the Parliament's two chambers, Prime Minister Victor Ponta, the Minister of Labor and a number of presidential advisers.
The average annual job vacancies rate was 0.89% in 204, up 0.17 pp from the previous year, according to the National Institute for Statistics (INS). The average annual number of vacancies was 38,500, up 7,900 from the previous year. The highest numbers of vacancies were reported in 2014 by the public administration and services sectors, while the lowest came from the energy and mining sectors.