News

Daily Newsletter - 24 April 2017

Summary

Macroeconomic News (5)

New food waste rules (Source: economica.net; Date: 2017-04-23; Author: Unspecified)

The European Parliament is looking at new ways of curbing food waste. Next month, the Parliament will vote on recommendations for member states, such as slashing the VAT of expiring food or banning prices that do not cover the costs. Romania's food waste law is supposed to come into force next month.

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Moody's downgrades Romania's rating outlook (Source: cursdeguvernare.ro; Date: 2017-04-23; Author: Unspecified)

Financial rating agency Moody's announced that it had lowered Romania's rating outlook from positive to stable, while confirming the Baa3 rating for the country's long-term debt. The decision was triggered by the Cabinet's fiscal policy, which pushed up the fiscal deficit, combined with a macroeconomic policy that pushed the current account deeper into the red.

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"The most important goal is to make the public payroll manageable" (Source: bursa.ro; Date: 2017-04-23; Author: Unspecified)

The most important goal of the unified payroll bill is to make the public payroll manageable at a time when the Cabinet must find the fiscal room to increase the public payroll by RON 32 billion, according to the Minister of Finance, Viorel Stefan.

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CNP still optimistic about economic growth (Source: adevarul.ro; Date: 2017-04-23; Author: Unspecified)

The International Monetary Fund has recently upgraded its growth forecast for the Romanian economy, from 3.8% to 4.2% in 2017, while the European Commission expects the Romanian economy to expand 4.4% this year. However, the two institutions are more cautious in their estimates than the Romanian government. Prime Minister Sorin Grindeanu said that he still thinks the economy would grow 5.2% this year.

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BNR: Current account on surplus, but external debt increased in first two months of 2017 (Source: cursdeguvernare.ro; Date: 2017-04-23; Author: Unspecified)

The balance-of-payments current account posted a surplus of EUR 204 million in the first two months of the year, compared to a deficit of EUR 139 million in January-February 2016, according to the data published on Thursday by the National Bank of Romania (BNR). On the other hand, total external debt increased by EUR 376 million to EUR 92.75 billion in January-February interval, mainly due to the increase of the non-publicly guaranteed debt balance (by EUR 722 million), along with the decrease in the balance of government debt (by EUR 348 million).

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Financial News (3)

New borrowing down 7% (Source: zf.ro; Date: 2017-04-23; Author: Unspecified)

Romanians took out RON 3.7 billion worth of RON- and EUR-denominated loans in the first two months of this year. Banks issued 14% fewer housing loans in January and February, compared to the corresponding months of 2016, with housing lending amounting to a total of RON 1.3 billion.

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Financial leverage down 29% (Source: economica.net; Date: 2017-04-23; Author: Unspecified)

Foreign banks have suspended more than 57% of the financing lines granted to their Romanian subsidiaries since the beginning of the financial crisis, thus lowering the financing leveraging rate from 39% in 2008 to 29% today. BNR has told some lenders to increase their equities, which forced foreign shareholders to pour EUR 3.5 billion into their local subsidiaries.

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BRD shareholders approve management's dividend (Source: capital.ro; Date: 2017-04-23; Author: Unspecified)

BRD shareholders approved yesterday the management's proposal to distribute 70% of the bank's earnings as dividends. The proposal set last year's dividend at RON 0.73 per share for a total of RON 728.2 million, according to the press release sent to the Bucharest Stock Exchange (BVB).

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Investment News (1)

Bio-Medica International to open Pipera hospital (Source: bursa.ro; Date: 2017-04-23; Author: Unspecified)

Bio-Medica International opened a dermatology and STD hospital in Pipera under a EUR 250,000 investment project. The hospital has been operational since the beginning of the month and is under contract with the CNAS, according to a press release.

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Legislative News (2)

MTPL rules change (Source: economica.net; Date: 2017-04-23; Author: Unspecified)

The Financial Supervisory Authority (ASF) will impose new obligations on insurers in order to avoid the situations when drivers who are the victims of accidents are not compensated promptly. To this end, the ASF has drafted an amendment to Norm 39/2016.

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PSD wants five-year suspension of privatizations (Source: profit.ro; Date: 2017-04-23; Author: Unspecified)

The process of privatizing state-owned companies could be suspended for five years, all privatizations proved in court as having been fraudulent could be canceled and the state could recover damages as shares and assets. The state would also seize all fraudulent Proprietatea Fund compensation shares, according to a bill drafted by PSD MPs.

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Politics (2)

"We are all equal before the law," said Tăriceanu (Source: romanialibera.ro; Date: 2017-04-23; Author: Unspecified)

Călin Popescu Tăriceanu, president of ALDE, said yesterday that DNA head prosecutor Laura Kovesi should obey the Parliament's summons to a hearing because "we are all equal before the law".

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Raluca Turcan: "You think PNL would have done a better job ruling the country? I'm afraid not." (Source: news.ro; Date: 2017-04-23; Author: Unspecified)

Raluca Turcan, the interim president of the National Liberal Party (PNL), visited the Cluj organization for the internal elections. Turcan held a speech telling party members that the PNL would not have done a better job ruling the country than the PSD, given the PNL's dismal performance in the recent elections.

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Social (1)

88 Galati county localities still out of power (Source: news.ro; Date: 2017-04-23; Author: Unspecified)

A total of 88 Galati county localities are still without power and 200 poles are down because of the snow blizzard, according to statements made by county officials at a press conference held on Saturday. Prefect Panaitescu said that all county roads were open.

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