News

Daily Newsletter - 25 May 2017

Summary

FIC (1)

CDR: "The proposed changes expose the economy to risks and instability" (Source: forbes.ro)

Representatives of the Romanian business community and of business advocacy groups attended on Wednesday a conference focusing on the government's tax overhaul proposal. The event was organized by Coalitia pentru Dezvoltarea Romaniei (AOAR, RBL, AmCham, CCIFER, AHK, FIC and CCF). Business community urges delay in implementing household taxation.

CDR’s Anghel: We are still too green to implement household tax (Source: nineoclock.ro)

Business community urges delay (Source: profit.ro)

CDR: The household tax exposes the economy to risks (Source: zf.ro)

CDR: the household tax exposes the economy to risk (Source: hotnews.ro)

"The proposed changes expose the economy to risks and instability" (Source: bursa.ro)

CDR:" The proposed changes expose the economy to risk and instability" (Source: cursdeguvernare.ro)

CDR: The household tax exposes the economy to risks (Source: diacaf.com)

Household tax could increase tax burden in 2018 (Source: mediafax.ro)

Business community: The household tax implementation is unsustainable, unrealistic and costly (Source: republica.ro)

Household tax could increase tax burden in 2018 (Source: money.ro)

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Macroeconomic News (4)

Romanians established 45,345 companies in four months 

Romanians established 45,345 companies in the first four months of this year, up 6.4% year-on-year. The number of limited liability companies jumped almost 4%, according to statistical data released on Wednesday by the National Office of the Trade Registry (ONRC).

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BT upgrades GDP growth forecast 

Banca Transilvania announced that it had upgraded its forecast for this year's GDP growth rate from 4.1% to 4.5%, following an upward revision of private consumption. However, experts continue to expect a slowdown of the economy in the medium-term.

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Brussels wants RON 15 billion worth of deficit adjustment measures 

Romania should adopt measures designed to adjust the budget deficit worth an estimated RON 15 billion in order to meet the country's obligations under the Stability and Growth Pact. The government was given until October 15 to come up with these measures.

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Nicolaescu worried about Romania's economic growth 

Romania's huge economic expansion, the fastest in the European Union, is worrying BNR deputy governor Eugen Nicolaescu. The consumption-driven boom is unsustainable and could lead to painful adjustments in the future, according to Nicolaescu.

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Financial News (4)

Only 11% of Romanian companies had outstanding bank loans in 2016 

"Out of a total of 608,246 active non-financial companies, meaning those that filed their balance sheets with the Ministry of Finance, only 68,088 had outstanding bank loans at the end of 2016. That's 11.2% of the total, with 8% owing money to the banks and 3.2% to both banks and NBFIs," said deputy BNR governor Liviu Voinea.

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BCR reconsiders client strategy 

After a harsh book cleansing program, which included record sales of NPLs and internal restructuring, executive president Sergiu Manea said BCR is trying to rebuild its relationship with the clients on a new foundation. The bank turned profits in the past two years, including the revenues obtained from NPL sales.

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Banking system's earnings up 

The banking system reported RON 1.23 billion in aggregated earnings for the first quarter of this year, a 10-year high, according to data released by the National Bank of Romania (BNR). The NPL rate dropped from 13.52% in Q1, 2016, to 9.36% in Q1, 2017.

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Private borrowing up 3.2% in April 

The aggregated value of private borrowing was RON 223.26 billion at the end of April, up 3.2% in April, according to the National Bank of Romania (BNR). RON-denominated borrowing surged 13.5%, while foreign currency borrowing plunged 8.7%.

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Investment News (1)

Transgaz seeks BRUA loan 

Transgaz, operator of Romania's natural gas transport system, is seeking a EUR 50 million loan in order to build the Romanian section of the BRUA international pipeline. The pipeline will link the natural gas transport systems of Romania, Bulgaria, Hungary and Austria.

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Legislative News (1)

Grindeanu: The criminal legislation amendment has completed its approval process 

Prime Minister Sorin Grindeanu stated on Wednesday that the amendments to the criminal legislation had completed its approval process. However, the PM had no idea whether the amendments would be discussed today by the Cabinet.

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Politics (1)

Ludovic Orban confident ahead of congress 

Ludovic Orban stated in Cluj-Napoca on Wednesday that he had the support of 27 of the party's 47 heads of county organizations and that he has the best chance of winning the internal election of June 17.

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