News

Daily Newsletter - 14 March 2017

Summary

Macroeconomic News (5)

State, as employer in capitalist Romania: a different analyisis of private economy (Source: cursdeguvernare.ro; Date: 2017-03-13; Author: Unspecified)

Who keeps alive the economy, administrative systems, budgets of all kinds – from the investment to pension budget – and ultimately the whole society? The answer to this question – that should be simple: private economy – looks more like a patchwork than it should. There are entire areas of the economy where the state is the employer without which nothing moves. And “the private sector”…. Better see the detailed picture: Between 2008 and 2015, the ratio between the number of employees in the private economy and the number of employees in the public sector increased from 3.45 to nearly 4. Total divergence: In 2015, in Vaslui, there were less than two employees in the private sector per each employee from the state sector. Ilfov is at the other extreme, a county with a spectacular and atypical evolution in several fields – here, there were almost 10 people working in the private sector in 2015 per each employee from the budget sector.

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Romanian industry began 2017 with 5.8% growth (Source: profit.ro; Date: 2017-03-13; Author: Unspecified)

The industry reported a 5.8% growth rate for January, compared to the corresponding month of 2016, according to data released on Monday by the National Statistics Institute (INS). The main drive of the entire sector was the processing industry.

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ANAF returning RN 439.38 million in VAT (Source: bursa.ro; Date: 2017-03-13; Author: Unspecified)

ANAF will return this month a total of RON 439.38 million worth of VAT payments, according to a press release posted on the institution's website.

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Trade balance deficit worsens (Source: cursdeguvernare.ro; Date: 2017-03-13; Author: Unspecified)

The trade balance deficit reached EUR 602.2 million in January, 2017, up EUR 222.5 million on an annual basis, according to data released by the National Statistics Institute (INS). Exports amounted to EUR 4.68 billion, while imports came in at EUR 5.28 billion.

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Economy to grow 4.1% (Source: zf.ro; Date: 2017-03-13; Author: Unspecified)

ING Bank analysts expect the economy to grow 4.1% this year, while the inflation rate will move up 1.1% and the national currency will gain ground against the euro. The ING Global Economic Forecasts also notes that the economic growth rate will drop to 3.5% in 2018.

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Financial News (4)

MFP rejects all bids. Again. (Source: zf.ro; Date: 2017-03-13; Author: Unspecified)

The Ministry of Finance (MFP) rejected on Monday the banks' bids for state bonds on grounds that the interest rate was too high. The Ministry offered RON 300 million worth of bonds and the banks filed bids worth a combined RON 288 million.

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Romanians used cards to make 1 million tax payments (Source: economica.net; Date: 2017-03-13; Author: Unspecified)

Romanian banks reported 1 million instances when cards were used to pay RON 360 million worth of taxes in 2016, according to data collected by Visa. The aggregated value was up 50%. "The value of tax payments made using cards increased almost tenfold in the past six years," said Catalin Cretu, Visa's general manager for Romania.

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"Debtors who cannot pay Prima Casa loans will be foreclosed on by ANAF" (Source: bursa.ro; Date: 2017-03-13; Author: Unspecified)

The amounts paid by the FNGCIMM to the banks under the Prima Casa program are recovered from bad debtors by ANAF through foreclosure, according to MF representatives. This is expected to discourage any attempts to not pay installments on Prima Casa loans.

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ING expects interest rates to double this year (Source: profit.ro; Date: 2017-03-13; Author: Unspecified)

ING Bank sees an upcoming increase in interest rates, as prices move up, forcing BNR to increase the interest rate. The three-month ROBOR rate is expected to soar from 0.8% at this moment to 3.1% by the end of 2018.

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Investment News (1)

Strabag wants to build four-star hotel (Source: zf.ro; Date: 2017-03-13; Author: Unspecified)

Austrian group Strabag is negotiating with S+B Gruppe the acquisition of a 3.8-hectare property located very close to the Otopeni Airport, according to market sources. The group wants to build a four-star hotel at the location, which would be linked to the airport itself by a corridor.

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Legislative News (1)

Punishment for key officials of capital market (Source: profit.ro; Date: 2017-03-13; Author: Unspecified)

Mircea Ursache, vice president of the Financial Supervisory Authority (ASF), has said that the criminal breach of capital market rules should also be included in the Prevention Bill.

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Politics (1)

Turcan says Ciolos welcome to join PNL (Source: romanialibera.ro; Date: 2017-03-13; Author: Unspecified)

Raluca Turcan, the interim leader of the National Liberal Party (PNL), said that former prime minister Dacian Ciolos is welcome to join the party and that there's no reason why his arrival should be discussed by the party leadership.

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Social (1)

ISU has list of locations (Source: news.ro; Date: 2017-03-13; Author: Unspecified)

Raed Arafat, head of the Emergency Situation Department (DSU), said on Monday that the authorities have a list of locations where people could be taken in the wake of a powerful earthquake. However, the locations will not be disclosed ahead of time.

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