Romania continues to be the leading corn exporter in the European Union. In the trade year 2014-2015, Romania accounted for more than 60% of the EU's corn exports and gained market share at the expense of France, thanks to the 2.5 million tons of corn sold abroad.
After six months of analyzes and debates, the big mistakes and aberrations plaguing the tax systems are still uncorrected. However, they will be joined by tax hikes and a number of deadlines which will be moved up. All these are bound to confuse the business community even further.
The current account of the trade balance was EUR 347 million in the red after the first seven months of this year, down from EUR 997 million year-on-year. The National Bank of Romania (BNR) reported a EUR 595 million drop in the primary income deficit and a EUR 310 million increase in the services balance surplus and a EUR 276 million increase in the secondary income balance surplus.
The Ministry of Finance (MFP) borrowed yesterday RON 200 million from the commercial banks through an issue of bonds maturing in 2021. The average yield was 3% per year, in line with the expectations of ING Bank analysts. The average yield is up from the previous tender's 2.7%.
While the Cabinet and Parliament have yet to push through bills that would help the debtors, the justice system is ruling in favor of the debtors in lawsuit after lawsuit. Piraeus Bank has lost another lawsuit and is now bound to freeze the EUR/CHF exchange rate for certain contracts.
Almost 10% of Romanians say that they cannot keep up with their installments. Bucharest residents and Moldovans are the best payers, while Banat has the highest number of overdue payments. Data released by the National Institute for Statistics (INS) show that 9.6% of Romanians cannot pay their consumer loan installments on time.
BCR lost another lawsuit over the interest rate of a loan contract, according to statements made yesterday by lawyer Gheorghe Piperea, who represented the plaintiff. The court ruled that the bank cannot use its own index to calculate the interest rate and that it must use the Euribor index.
According to Deloitte Research, Romania occupy the 4th position in the classification of the countries with the biggest presence of companies in the Top 500. Compared to the previous year, when 42 Romanian companies entered in Top 500, in 2015 we are presented with 46 companies. Energy and resources industry contributed most to Romania's position in the Top, with a combined income of EUR 18.943 billion. According to Deloitte Research, OMV Petrom is the most successful Romanian company.
Erste Equity Romania, a fund managed by Erste Asset Management, has posted a 6.5% yield for the past 12 months, the highest of all stock funds. EER invested mainly in Romgaz, the Proprietatea Fund and Electrica shares. The BET index dropped 2% over the same period of time.
The current account deficit dropped 65% thanks to foreign investment, remittances and the surplus caused by the exports of services, but the trade balance is worsening. Foreign direct investment increased by 35% in the first seven months of this year, reaching EUR 2 billion. If this pace held, 2015 could be the best year for non-resident investment since the beginning of the financial crisis, according to the National Bank of Romania (BNR).
The Federation of Free Education Unions (FSLI) has drafted a bill that would bestow public authority status on teaching personnel, which would protect teachers and professors against possible abuse from students and parents. The bill would make such abuses criminal cases.
Several leaders of party organizations who are close to Liviu Dragnea have urged the central leadership to hold the Social Democratic Party's (PSD) Extraordinary Congress in the first half of October, instead of November. The new head of the Bucharest organization, Robert Negoita, stated that the purpose of this congress is to legitimate Dragnea's control of the party.
President Klaus Iohannis stated that approximately 4,000 schools, one in five, lack sanitary permits at the beginning of the new academic year, a situation he described as "a national shame". The President challenged the Cabinet to come up with a three-year plan for modernizing the nation's schools.