News

Daily Newsletter - 12 October 2017

Summary

Macroeconomic News (3)

IMF revises economy estimates 

The International Monetary Fund has revised its growth estimate for the Romanian economy from 4.2% to 5.5% for this year, according to statements made by Prime Minister Mihai Tudose at yesterday's Cabinet meeting. The PM voiced his opinion that the IMF could have been influenced by the strong positive sign coming from the Trade Winds economic mission, which involves 100 US companies looking to do business in Romania.

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MFP expected fuel price to jump 1.7% from excise increase 

The direct impact of the RON 0.32 per liter excise hike on the average inflation rate "may not exceed 0.1 percentage points," according to an analysis conducted by the Ministry of Finance before September 15. In order to back up its optimistic view, the Ministry invoked the effects of past excise increases and decreases, as well as the low price of oil on the international markets.

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MFP borrowed EUR 1 billion from abroad 

The Ministry of Finance (MFP) borrowed EUR 1 billion from the international financial markets yesterday by reopening the issue sold in April. The bonds mature in 10 years. "The demand and yield shown by yesterday's issue confirm once more that investment circles are optimistic about the Romanian economy and its outlook," said Minister Ionut Misa.

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Financial News (3)

Raiffeisen managers explain why ANAF was wrong 

The interest that Romanian subsidiaries pay to their parent-banks on subordinate loans are higher compared to other types of loans because of the features and costs involved and not because the banks want to lower their tax bills. This is the argument presented by the top managers of Raiffeisen Bank during a meeting with the press. BCR, a rival of Raiffeisen, is currently involved in a tax lawsuit against ANAF.

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ROBOR index stagnates 

The three-month ROBOR index stagnated at 1.78% yesterday, while the six-month ROBOR index moved up to 1.92%. The former was largely stabilized by BNR's interventions and is floating around 1.79%. On October 3, the National Bank of Romania (BNR) had thrown RON 9.3 billion on the market.

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CAR beats banks 

The Mutual Aid Houses (CAR), the Communist alternative to the traditional CEC, have modernized during the past 27 years. The CARs are now associations and have international partners. Some of them offer interest rates of up to 5% per year on deposits, as well as loans maturing in up to five years. The savings handled by CARs are exempt from all taxes and fees.

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Investment News (2)

Teraplast invested EUR 11 million in Serbian construction materials plant 

Teraplast Bistrita, a producer of construction materials, will open today its sandwich panel plant in Leskovac, Serbia. The company has spent EUR 11 million on this project, including the acquisition of the plant itself from the previous owner.

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Romania's biggest greenhouse to open next week 

Romania's biggest greenhouse will open next Thursday, on October 19, in Biled, a town outside Timisoara. The capital is 100% Romania, while the technology is Dutch. The opening ceremony will be attended by Petre Daea, the Minister of Agriculture.

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Legislative News (1)

More than half of magistrates want judiciary reform bill withdrawn 

The number of magistrates who signed the petition circulated by the Romanian Judge Forum (FJR), urging Prime Minister Mihai Tudose to withdraw the judiciary reform bill, is getting close to 3,600. This means more than half of Romania's active prosecutors and judges.

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Politics (2)

Opposition motion fails 

The simple motion called "PSD Is Very Bad for Health" was rejected yesterday by the Chamber of Deputies. The motion had been backed by 94 MPs belonging to the National Liberal Party (PNL), Save Romania Union (USR) and the People's Movement (PMP) and it demanded the sacking of the Minister of Health, Florian Bodog.

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PM sends public message to party leader 

Prime Minister Mihai Tudose made public on Wednesday the two messages he had delivered in private to Liviu Dragnea, leader of the Social Democratic Party (PSD) and president of the Chamber of Deputies: the Minister of Justice, Tudorel Toader, must be left alone to do his work, while Ministers Sevil Shhaideh and Rovana Plumb must leave the Cabinet.

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