News

Daily Newsletter - 26 June 2017

Summary

Macroeconomic News (5)

Initiative for SME: 540m euros available for the firms in Romania (Source: euractiv.ro; Date: 2017-06-25; Author: Unspecified)

Five banks have signed agreements for implemneting the Initiative for SMEs in Romania, whereby new funding is granted for enterprises from all the regions of the country. The group of the European Investment Bank (EIB) has signed recently with other two banks from Romania - Bancpost and Banca Transilvania - funding agreements within "Initiative for SMEs" program. Other three agreements were signed in May with Raiffeisen Bank, Banca Comercială Română and ProCredit Bank. Approximately 3700 Romanian startup undertakings and SMEs are to benefit from these agreements, according to the European Commission.

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CFA Romania" The economic confidence indicator grew significantly in May, before the political crisis (Source: cursdeguvernare.ro; Date: 2017-06-25; Author: Unspecified)

The current conditions indicator, measured by CFA Romania (by the estimations of the members of the organization), reached a historic maximum of 83.8 points in May, up 7.9 points, compared to April. The macroeconomic confidence indicator rose 5.8 points in May compared to one month before, to 66.6 points. This indicator has two components: the current conditions indicator and anticipation indicator. The latter also climbed by 4.8 points, up to 57.9 points.

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Local authorities might set differentiated fees on the buildings of the firms, in order to stimulate certain economic activities (Source: profit.ro; Date: 2017-06-25; Author: Unspecified)

Local authorities might set reduced fees on the buildings of the legal people, depending on the nature of the economic activity they want to stimulate, according to a draft law initiated by the liberals. "This amendment aims at ensuring a higher freedom of decision to the local councils, to the General Council of the Municipality of Bucharest respectively, for establishing a rate of taxation ranging between 0.2% - 1.3%, in order to stimulate some local economic activities, according to the specificities of every locality and to the priorities of the local communities for fostering some economic activity sectors, such as agriculture, tourism, HORECA, research, education and health. This is a legislative proposal which would spur the business environment and would introduce fairness in the Romanian fiscal policy", the PNL parliamnetarian Claudiu Racuci specified.

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ANRE: The electricity price for population will increase by 8% as of 1 July only in the case of the contracts with the last resort suppliers. Consumers can achieve better prices on the free market (Source: news.ro; Date: 2017-06-25; Author: Unspecified)

The electricity price for population will increase by 8% as of 1 July only in the case of the contracts with the last resort suppliers, but consumers can achieve better prices on the free market, provided that the price comparator displayed on ANRE website comprises many offers below the price approved on Thursday for the energy supplied within the universal service, according to the data sent on Friday, at News.ro request, by the head of the National Energy Regulation Authority (ANRE), Niculae Havrilet, who did not offer an exact percentage by which the prices for population will rise as of 1 July.

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ANAF: 652 taxpayers checked in two days have paid RON 15.8m to the budget (Source: bursa.ro; Date: 2017-06-25; Author: Unspecified)

The inspectors of the General Fiscal Anti-fraud Directorate (DGAF) checked 652 taxpayers during 22-23 June, they paying RON 15.77m (3.45m euros) to the state budget after the checks, the National Fiscal Administration Agency (ANAF) announced yesterday. The inspectors carried out the checking actions aiming mainly at analyzing how the tax claims are highlighted, declared and paid, according to the cited source.

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Financial News (4)

Patria Bank wants to cut RON 149m from the share capital for covering the losses accumulated previously (Source: profit.ro; Date: 2017-06-25; Author: Unspecified)

Patria Bank, the name under which the credit institution resulted from the merger between Banca Comercială Carpatica (BCC) and Patria Bank, wants to reduce its share capital by about RON 149.12m for covering partially the losses accumulated in the previous years. The boardroom of the bank has summoned the Extraordinary General Shareholders' Meeting on 28 July for voting the capital reduction by RON 149,118,190 from the current level of RON 376,239,912. The reduction of the share capital will serve for the partial coverage of the accounting loss cumulated on 31 December 2016, worth approximately RON 152.56m, according to a communication of Patria Bank. Following the operation, the capital of Patria Bank will decrease at RON 227.121m.

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Coface: Prima Casa program begins to lose from relevance (Source: bursa.ro; Date: 2017-06-25; Author: Unspecified)

Prima Casa program whereby the Government has intervened on the real estate market begins to lose from relevance, a Coface report shows. "The guarantees offered by this program since 2009 were the main support pillar of the real estate market after the dramatic slump caused by the financial recession", the document shows, according to Agerpres. Coface also shows: "During 2009-2016, approximately 200,000 transactions were brokered through this program, worth RON 31.5bn in total. Regarding the return of the real estate market and the fact that the average price of real estate properties begins to exceed the funding ceiling offered by Prima Casa in several areas, the role of this program seems to be secondary. In this context, 2016 marked the first contraction both in the number of deals and in the value of guarantees brokered by this program. More precisely, the number of deals guaranteed through Primaa Casa program dropped by 22% in 2016, at 27,329 deals, while their value decreased by 4%, at only RON 2.75bn.

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CFA Romania: Leu will decrease, interests will increase (Source: economica.net; Date: 2017-06-25; Author: Unspecified)

The majority of CFA Romania members estimate a drop in leu in the next 12 months, and an increase in the interest rates in the loans in national currency respectively, it emerges from a survey of the association sent on Sunday, to AGERPRES. "It is remarkable that 73% of participants anticipate a drop in leu in the next 12 months. Thus, the median values of the anticipations for the six months horizon recorded an anticipated rate of 4,5650 (150% higher value compared to that recorded in the previous exercise), while for the 12 months horizon they recorded an anticipated rate of 4,6000 (value similar to that recorded in the previous exercise). The anticipated rate of inflation for the 12 months horizon (June 2018-June 2017) registered a median value of 2.00% (0.35% higher than that recorded in the previous exercise). The anticipations of interest rates' increase in leu are remarkable both for the short-term due dates (three months) and for the medium-term ones (five years), all the participants in the survey anticipating this evolution", the document shows.

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CEC Bank has sold bad loans of RON 541m to Kruk at an 83% discount (Source: zf.ro; Date: 2017-06-25; Author: Unspecified)

CEC Bank, the sixth bank in assets, sold a package of consumer credits and bad credit cards worth RON 541.4m (120m euros) grossly last year for which it earned RON 94m, which means an 83% discount, pursuant to the annual financial situations of the bank. According to sources from the market, the buyer of the bad loans package was the Polish recoverer Kruk, with which the state bank had stricken bargains for other packages too in the past.

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Investment News (1)

Tulcea: Two county roads will be modernized by European funds; the value of the investment - over 30m euros (Source: news.ro; Date: 2017-06-25; Author: Unspecified)

Two county roads from Tulcea will be modernized by European funds, they having cycle routes and bus stops, the investment being worth over 30m eurros. Authorities will submit other rehabilitation projects for other three county roads for funding by the middle of next month.

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Legislative News (1)

The Government reintroduces the condition of the 10,000 euros for the tax exemption granted to programmers (Source: cursdeguvernare.ro; Date: 2017-06-25; Author: Unspecified)

As of 1 July, the condition that the firm which benefits from tax exemption for programmers to have revenues of over 10,000 euros for every IT expert returns. The measure has been reintroduced by the Joint Order of the ministries of Communications, Education, Labor and Finace no. 409/4.020/737/703 on the classification of computer program creation activity, which enters into force on 1 July.

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Politics (2)

Mihai Goitu: USR goes to Cotroceni with the idea of supporting a government that observes the laws (Source: agerpres.ro; Date: 2017-06-25; Author: Unspecified)

USR will go to the consultations from Cotroceni Palace on Monday with the idea of supporting a government that observes the laws and the rule of law, the USR senator Mihai Goitu stated on Sunday for AGERPRES."USR will go with the idea of supporting a government that observes the laws and the rule of law and will try to offer a majority for sustaining the government. We intend to support of justice minister who would guarantee such thing", the senator added.

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What variants of prime minister does Liviu Dragnea have before the meeting with Iohannis. PSD counts on UDMR again for installing the new Government (Source: adevarul.ro; Date: 2017-06-25; Author: Unspecified)

Liviu Dragnea has reached an agreement with the parliamentarians close to Sorin Grindeanu for voting the new Governemnt. According to a political source, Dragnea also counts on the UDMR votes, party that will support PSD, but without governing. Iohannis also must accept Dragnea's proposal. President Klaus Iohannis will begin consultations with the parliamentary parties on Monday for appointing the new prime minister. PSD and ALDE will have a session in the morning when they will establish the prime minister proposal for meeting the president. According to a social-democrat source, Viorica Dancila and Mihai Fifor are favorites to get to Victory Palace, although both denied a proposal had been made for them. Viorica Dancila, originating from Teleorman, is the leader of PSD members in the European Parliament and one of the closest people of Liviu Dragnea.

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Social (1)

The vaccine crisis, scandal seed between officials (Source: adevarul.ro; Date: 2017-06-25; Author: Unspecified)

The repeated failures in the national immunization program are the basis of some scandals between politicians, who throw arrows from some to the others. Although the Ministry of Health defends itself, specifying that there are sufficient vaccine stoks, the general practitioners say they have received only 50% of the doses requested for June. The vaccine crisis is far from being solved. Parents contend this, who turn back from the general practitioners and are put in the situation of looking for the serum necessary for children in pharmacies or even abroad. Although the Ministry of Health has identified vaccine stocks for covering the need until the end of 2017, the family doctors say the number of doses which get to surgeries is insufficient.

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