News

Daily Newsletter - 20 April 2017

Summary

Macroeconomic News (5)

The draft law on household tax system 

Amendments to the Fiscal Code prepared by the Grindeanu Government- related to the implementation of the household tax system significantly complicate the procedure of declaring and collecting revenues to the state budget. The concept is currently being evaluated by a wide range of experts, including those belonging to the National Union of Notaries Public, the Fiscal Consultant Chamber, the CECCA and the Coalition for Romania's Development (CDR).

MFP: The idea of annual aggregation for income taxes is being analyzed 

The project for amending the Fiscal Code is undergoing a thorough analysis, according to the Ministry of Finance. The concept is currently being evaluated by a wide range of experts, including those belonging to the National Union of Notaries Public, the Fiscal Consultant Chamber, the CECCA and the Coalition for Romania's Development (CDR).

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Romania had lowest inflation rate in EU in March 

At 0.4%, Romania had the lowest annual inflation rate of all EU countries. The average EU inflation rate was 1.6%, while the eurozone's was 1.5%. Ireland and Netherlands boasted 0.6% inflation rates, while the Baltic countries had inflation rates above 3%.

IMF upgrades economic forecast 

The IMF has announced that Romania's economy will grow faster than expected this year, but still below the government's 5.2% estimate. The IMF upgraded its growth forecast for the Romanian economy from 3.7% to 4.2%, according to the World Economic Outlook 2017 report.

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BRD expects Romanian economy to grow 4.1% in 2017 

BRD-GSG analysts said that Romania's economy will slow down this year, with the growth rate falling to 4.1%, while the budget deficit will exceed the mandatory cap and reach 3.4% of the GDP, according to a report released on Wednesday, April 19.

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Financial News (3)

Abusive terms law back before CCR 

The Bucharest Court has notified the Constitutional Court of Romania about a class lawsuit launched by the National Consumer Protection Authority (ANPC) against Banca Romaneasca. The unconstitutionality status was raised by the bank in connection with the now famous articles 12 and 13 of Law 193/2000 regarding abusive contract terms.

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CEC Bank launches new revolving financing instrument for exporters 

CEC Bank announced on Wednesday the launching of a new revolving financing instrument for exporters. The new loan is a financing line denominated in euros or US dollars that clients can use any time they want. However, clients must pay a fee for having the funds at their disposal, even if they don't use the money.

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BR sells new loan 

Banca Romaneasca has launched the FIT Loan, a product that requires no review fee, no proof of income or other documents and no real estate collateral or justification, according to a press release. The loan ranges from RON 1,000 to RON 110,000 and the maximum maturity is between five and ten years.

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Investment News (3)

More than 40% of national electricity production came from renewable sources last year 

Renewable sources accounted for 42.49% of Romania's national electricity output last year, according to a report from the National Energy Regulatory Authority (ANRE). Hydro power is the most important renewable energy source (29.88% of the total), followed by wind power (11.07%).

Continental plant expands 

The Continental car parts plant in Timisoara has expanded its production and storage space by 5,000 sqm and opened a new office building. The company spent EUR 12 million on this expansion, which was required because of future output increases.

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Carlyle Group wants to pump natural gas out of Black Sea 

Representatives of Carlyle Group, the world's biggest private equity firm, met yesterday with Prime Minister Sorin Grindeanu at the Victoria Palace. The two sides discussed investment in the Black Sea region and the firm's representatives announced their intention to start pumping natural gas out of the undersea deposits as soon as possible.

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Legislative News (1)

Parallel exports now allowed 

The Chamber of Deputies passed on Wednesday a bill allowing companies licensed to act as retailers of drugs to engage in wholesale operations. The bill had previously been rejected by the Senate, but the Chamber has the final say so and thus the bill is now on its way to President Iohannis.

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