The Netherlands has been for ten years the most important foreign investor in Romania, with a balance of share capital or RON 32 bln, 22% of the total. Among the largest companies headquartered in the Netherlands are multinationals such as Ford, Coca-Cola, PepsiCo, Cameron, Bunge, IBM and Oracle. Not only the Americans use the Dutch tax regime to invest in Romania. And Enel, IKEA, Mega Image and Auchan have holding companies registered in the Netherlands, according to the shareholding structure from 2013. "We, at the Foreign Investors Council, do not go on national criteria when talking about an investment. We do not analyze situation for particular countries, but we are looking to create a stable investment environment for any company", said Jean Valvis, Vice president of the Foreign Investors Council and the creator of Dorna and LaDorna.
The announcement of a political consensus has a short-term beneficial effect on the economy, according to Lucian Croitoru, monetary policy adviser of Mugur Isarescu, Governor of the National Bank of Romania (BNR). The idea of consensus is important because it is associated with the end of petty political fights and the launching of long-term projects.
The Ministry of Finance (MFP) borrowed yesterday, September 7, RON 500 million from the commercial banks through an issue of bonds featuring a residual maturity of 21 months and an average yield of 1.76% per year. The issue was worth RON 500 million and the banks offered a total of RON 1.9 billion. A supplementary tender will be held today for another RON 75 million.
The economic growth rate reported by the Government is driven by consumption, thanks to pay rises or tax cuts, while investment has lost ground as percentage of the GDP. The INS reported that final household consumption was up 3.6% in the first half of this year, compared to the corresponding period of 2014, and that it accounted for 3.5% of the GDP growth rate.
The MyBRD Mobile service that launched the BRD-GSG in November 2013, has now 160,000 users and is one of the applications with the highest number of downloads from the iOS, Android and Windows Mobile stores. The most popular service among MyBRD users is payments made between one's own accounts, followed by the paying of utilities bills.
The aggregated value of overdue installments on loans above RON 20,000 dropped by RON 192 million in July, reaching RON 31.1 billion, according to data released by the Central Credit Register (CRC) of the National Bank of Romania (BNR). In July, these installments accounted for 11.68% of all the money owed by clients to the banks. 86% of the total were loans more than 12 months overdue.
Bancpost logged RON 34.6 million in earnings for the first half of this year, up 37% on an annual basis. The NPLs rate dropped from 21% to 16.3% and the bank optimized the financing sources through the active managing of its retail deposits portfolio and also by attracting a high volume of resources from the international financial institutions: the European Bank for Reconstruction and Development, the International Finance Corporation and the European Investment Bank.
Banca Transilvania wants to increase its share capital by RON 33,962 through the issue of 33,962 shares, according to a report sent to the Bucharest Stock Exchange (BVB). The board of directors had approved the list of bond holders which had exercised their right to convert and the issue of stock to this effect.
The Oradea City Hall has launched a RON 14 million investment project for building an underground parking on Corneliu Coposu Street. The construction work is scheduled for completion in 11 months. The parking will house up to 193 cars underground and 219 cars at ground level. An underground tunnel will connect the parking to the Rogerius market.
VPK Packaging, the Belgian companies which owns two packaging plants in Salonta, Bihor county, will spend EUR 2 million this year on expanding its production space by 4,600 sqm. One of the company's plants produces and supplies cardboard boxes and panels, while the other focuses on cardboard tubes.
President Klaus Iohannis announced yesterday, September 7, that he had signed the Fiscal Code, the most important law passed by the Parliament this year. The President declared himself content with the public discussion of the bill, including the negotiations between the parties.
The Senate approved on Monday the changes to the bill on personal data processing and privacy protection in electronic communications, also known as the Big Brother bill. The bill was backed by the party leaders in May and will be sent to the Chamber of Deputies for the final vote.
Liviu Dragnea, interim president of the Social Democratic Party (PSD), announced on Monday that he had urged all parties to attend a discussion regarding the modification of the Constitution. President Iohannis was also invited. According to Dragnea, MPs should have five-year terms, just like the president.
President Iohannis has voiced the country's official position regarding the migrants crisis. The President said that Romania had maintained a consistent position during all the discussions held at the European Council, always rejecting the idea of quotas imposed by the EU and supporting the idea of voluntary quotas. While the European Commission still has to unveil its new plan, Romania is not ready to accept more than 1,785 refugees.