News

Daily Newsletter - 28 March 2017

Summary

Macroeconomic News (3)

Budget revenues down 1.4% in January and February (Source: bursa.ro; Date: 2017-03-27; Author: Unspecified)

The revenues of the general consolidated budget stood at RON 34.9 billion at the end of the first two months of this year, down 1.4% year-on-year in nominal terms, according to the report released on Monday by the Ministry of Finance.

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Budget shows RON 397.1 million surplus (Source: news.ro; Date: 2017-03-27; Author: Unspecified)

The general consolidated budget showed a RON 397.1 million surplus for the first two months of this year, the equivalent of 0.05% of the GDP. Still, the surplus is down from the RON 788.1 million reported for the corresponding period of 2016, according to the Ministry of Finance.

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Debts of companies to suppliers in Romania maintain above 56 billion lei. Wholly Romanian-owned companies are most indebted (Source: cursdeguvernare.ro; Date: 2017-03-27; Author: Unspecified)

The outstanding payments of the companies to suppliers in Romania amounted to about 56 billion lei in 2016, compared to 56.5 billion lei in 2015 and over 57 billion lei in 2013 and 2014, according to a KeysFin analysis. The arrears of the 76,893 companies (12% of the total number of companies in Romania) represent 33% of the total turnover in the Romanian economy and maintain at a high level “despite the tax easing measures“. The wholly Romanian-owned companies cover almost half of the total amount (25.6 billion lei), the foreign-owned companies register outstanding payments of 11.95 billion lei and the joint companies 7.95 billion lei. State-owned companies have 7.33 billion lei left to pay to their suppliers, according to the KeysFin data.

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Financial News (4)

NPL rate up 0.29 pp in January (Source: economica.net; Date: 2017-03-27; Author: Unspecified)

The NPL rate reached 9.75% in January, up 0.29% pp month-on-month, according to the National Bank of Romania (BNR). However, the rate is down 3.71 pp year-on-year. Deputy BNR Governor Liviu Voinea has recently said that the target NPL rate for this year is 6%.

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Moody's upgrades Raiffeisen deposit rating (Source: zf.ro; Date: 2017-03-27; Author: Unspecified)

Moody's has improved the short-term and long-term deposit rating of Raiffeisen Bank from Ba1/Not Prime to Baa3/Prime-3. The bank's base adjusted credit rating was upgraded from ba3 to ba2.

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BNR: Bad loans stood at more than RON 13.6 billion last month (Source: bursa.ro; Date: 2017-03-27; Author: Unspecified)

The aggregated value of bad corporate and retail loans was more than RON 13.6 billion at the end of February, down 35.7% on an annual basis, according to data centralized by the National Bank of Romania (BNR). More than 6 billion of the total are RON-denominated bad loans.

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Banks and debt collectors could face hurdles (Source: profit.ro; Date: 2017-03-27; Author: Unspecified)

Debtors could get more rights if they end up being unable to keep up with installments. The suspension of foreclosure could be allowed without posting a bond and the forced sale price could be set at no less than 75% of the debt.

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Investment News (2)

Helios Phoenix buys Millennium Logistic Park (Source: zf.ro; Date: 2017-03-27; Author: Unspecified)

Real estate developer Helios Phoenix, which has been operating in Romania for more than 20 years, has decided to expand its portfolio with the acquisition of the Millennium Logistic Park. The park is located in Popesti Leordeni and is the third such project sold in Romania.

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Elis Pavaje invests EUR 10 million in new plant (Source: profit.ro; Date: 2017-03-27; Author: Unspecified)

Elis Pavaje has started building its third Romanian plant, which is located in Secuienii Noi, Neamt county. The new plant will begin production in July and will focus on supplying clients located in eastern Romania. The company spent EUR 10 million on this plant and expects to recoup its investment in 10 years.

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Legislative News (2)

CSAT no longer involved in SIE head appointment (Source: cursdeguvernare.ro; Date: 2017-03-27; Author: Unspecified)

The Senate passed yesterday an amendment to Law 1/1998, the Foreign Intelligence Service (SIR) charter. The amendment removes the Supreme Homeland Defense Council (CSAT) from the process of appointing the head of SIE. According to the new rules, the candidate's name is put forward by the President and approved by the Chamber and Senate in a joint session.

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Chamber approves family bill (Source: news.ro; Date: 2017-03-27; Author: Unspecified)

The deputies discussed on Monday the citizen initiative to amend article 48 of the Constitution that defines the family. The final vote on the bill will be held on Tuesday. The only amendment backed by the Chamber defines marriage as "the union between a man and a woman", without expanding this definition to include the family.

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Politics (1)

PNL leader says Tariceanu will decimate own party (Source: romanialibera.ro; Date: 2017-03-27; Author: Unspecified)

Raluca Turcan, interim leader of the National Liberal Party (PNL), said Calin Popescu-Tariceanu would decimate his own party in the name of his interests. She also added that the Cabinet is operating in a total confusion.

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Social (1)

Police officers resort to novel protest (Source: cursdeguvernare.ro; Date: 2017-03-27; Author: Unspecified)

Police officers have adopted a novel way of protesting: issuing warnings instead of fines in order to make the Cabinet understand the force's contribution to the state's revenues.

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