News

Daily Newsletter - 1 November 2017

Summary

FIC (1)

The Foreign Investors Council contradicts Tudose: Companies do not support the transfer of contributions. Net wages will be affected (Source: feedler.ro)

The conclusions of the FIC consultation process with its members: companies do not welcome this measure, because they do not understand its economic rationale. The Government did not carry out an impact study to quantify all its effects, which means that the risk of unintended consequences is extremely high. There is no certainty that once the contributions are shifted, there will be no new taxes on employers. The fluidity of fiscal policies makes planning difficult, and at the same time it raises the fear that, if misaligned decisions make public finances unbalanced, they will be repaired by tax measures taken inadvertently.

The Foreign Investors Council contradicts Tudose: Companies do not support the transfer of contributions. Net wages will be affected (Source: ziare.com)

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Macroeconomic News (3)

Romania imports pears worth 18m euros. Italy and the Netherlands, the main suppliers 

Pear imports rose 3.6 times in value in the past five years, from 4.8m euros in 2012 to 17.7m euros last year, according to Eurostat data. Imported pears are found predominantly in supermarkets, brought from Italy notably, which cover more than half of the overall value of pear imports in 2016.

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European Commission: Confidence in Romania's economy decreases, against the European trend 

Confidence in Romania's economy deteriorated in October, up to the second lowest level of this year, according to a report of the European Commission. The Economic Sentiment Indicator (ESI) dropped up to 104.6 points, the lowest since February. Instead, ESI continued its growth at European level, by 1.1 percents at the EU level up to 114.2, the highest level since June 2007 and by 0.9% up to 114, the highest level since January 2001.

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BNS, ABOUT THE TRANSFER OF CONTRIBUTIONS TO EMPLOYEE: There is no certitude net wages will be maintained at the level prior to the transfer 

The transfer of one part of the contributions from the employer to the employee in 2018 will not have a negative impact on wages either in the public or private sectors, prime minister Mihai Tudose and the finance minister Ionut Misa stated today within the meeting of the National Tripartite Council for Social Dialogue. Pursuant to a Government communication, the head of the Cabinet underlined: "I talked with the business environment, wages will increase. The business environment told me this is an opportunity for paying their people better".

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Financial News (3)

Alternative Bank Litigation Settlement Center: Amicable settlements of the lawsuits with banks and NBFIs is on an upward trend 

The Alternative Bank Litigation Settlement Center, institution found in 2015, has 120 files settled or pending at the end of October and over 50 applications in the filtering stage, 47 new applications being submitted last month. Amicable settlements of the lawsuits with banks and NBFIs is on an upward trend, highlighted by the number of files accepted by traders too. Thus, from two accepted files, on average, per week, in the first 9 months of the year, 12 files were reached per week in October.

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NBR HAS INJECTED LIQUIDITY IN THE BANKING MARKET, FOR THE FOURTH TIME IN OCTOBER Ionut Dumitru: "The state has transformed banks' liquidity surplus into deficit" 

The National Bank of Romania (NBR) injected, yesterday, more than RON 4.12bn in the banking market, this being the fourth repo operation made by the Central Bank in October, after Robor index had begun to increase fast. This month's other liquidity insertions were worth over RON 1bn (on 23 October), about RON 4.13bn (on 10 October) and RON 9.3bn (on 10 October). These moves of the National Bank come provided that both NBR officials and commercial bankers contended, a few months ago, that the banking sector is flooded with liquidity.

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The eighth consecutive session with euro at RON 4.59. Gold, at its highest value since late September - NBR exchange rate 30.10.2017 

The National Bank of Romania (NBR) announced a reference exchange rate of RON 4.5974/EUR, RON 3.9512/USD, RON 3.9607/CHF. Gold reaches the maximum level of the last month. Euro began the day at RON 4.60, compared to RON 4.59, the NBR exchange rate announced Friday. After 11.30, euro returned to RON 4.59. On 10 October, the European currency reached the lowest level of the past two months (RON 4.5729/EUR compared to 14 August 2017, RON 4.5710/EUR). On 29 October, the European currency reached the maximum level of the past five years again - RON 4.5991. More precisely, RON did not reach such a low value since 3 August 2012 when NBR announced a reference exchange rate of RON 4.6481/EUR.

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Investment News (2)

Transelectrica to finish investments worth nearly RON 100m by the end of the year 

The national electricity transport company Transelectrica announced Tuesday that it will put into service five investment works worth RON 97.98m in total, by the end of the year, targeting retrofitting and modernization of some transformation stations in Campia Turzii, Bradu, Cluj Est, Pestis and Vetis. Thus, on 26 October, the retrofitting of 220/110/20kV Campia Turzii station was completed by a RON 42m investment, News.ro writes.

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Lithuanians from Hanner attack the office market by a mixed-use project worth over 30m euros at the former beer factory Grivita 

The project will be called the Former Factory and is conducted by Romanian architects. "We want to attract SMEs and freelancers. We expect the biggest client to have 50 employees, not hundreds or thousands as it happens in other buildings in the area". The Lithuanian property developer Hanner Holding will initiate the reconstruction and transformation of the three buildings of the former beer factory Grivita, Malt-house, Barley-house and Administrative Body, into an office project with a residential component following an over 30m euros investment, in the first part of next year.

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Legislative News (2)

Justice draft laws at the Parliament - they will be debated urgently 

The governing coalition registered the draft laws amending the three laws important for the judicial system: Law 303/2004 on magistrates' statute, Law 304/2004 on judicial organization, Law 317/2004 on the Superior Council of Magistrates, Tuesday, in the Chamber of Deputies. This is their third form and will be assumed by PSD-ALDE coalition and debated urgently.

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If the Government does not postpone it again, the Law on personal bankruptcy will be enforced as of January 

The Law on natural persons' insolvency allowing Romanians with debts to banks to declare their bankruptcy will be enforced as of 1 January 2018, the Parliament decided today. The Law should have entered into force as of 2016, but no government hasted to apply it. This summer, after the latest postponement, lawyer Gheorghe Piperea, who became then the prime minister's honor counselor, and supporter of the clients with bank loans, explained for Profit.ro how the Law will be amended until its enforcement.

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Politics (2)

Tariceanu: We aim at correcting excesses, abuses and slippages in justice 

The head of the Senate, Calin Popescu Tariceanu, stated Tuesday, in Deva, that the laws reforming the justice aim at correcting the "slippages" of the system, appreciating that citizens had suffered in the past years from its "deficient" operation.

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Orban asks Dragnea to exclude Serban Nicolae from PSD "for the outrageous and denigrating statements against the memory of the anti-communist fight in Romania" 

The PNL leader, Ludovic Orban, asked his counterpart from PSD, Liviu Dragnea, Tuesday, through an open letter, to exclude Serban Nicolae from the party "for the outrageous and denigrating statements against the memory of the anti-communist fight in Romania".

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