News

Daily Newsletter - 3 July 2017

Summary

Macroeconomic News (3)

Beekeeping subsidies to reach RON 32.5 million per year 

The national program for subsidizing beekeepers will continue until 2019. The authorities are planning to pay RON 32.5 million in annual subsidies, with 50% of the sum being EU funds. The program was approved on Friday, with an extended list of stipulations that allow beekeepers to apply for even more money.

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Minister of Agriculture to stay out of food market 

The Minister of Agriculture, Petre Daea, stated that the state should not set the price of cereals or other agricultural products, especially in good harvest years. However, the Cabinet is looking into ways of making cereals sales more predictable.

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Heat wave drove Bucharest power consumption up 13% 

The high temperatures reported in Bucharest in the past few days have led to a power consumption spike. Some neighborhoods were hit by outages because of the extreme weather, according to E-Distributie Muntenia. The company reported that the average increase in power consumption was 13% in Bucharest.

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Financial News (3)

BRD-GSG continues to head workforce index 

BRD Groupe Societe Generale continued to lead last year the index of banks, based on the number of employees. Even though the bank had fewer employees compared to 2015, its aggregated staff was still clos eto 7,100. Banca Transilvania hired almost 500 new employees last year and is poised to overtake BRD-GSG.

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Romanians took RON 800 million worth of consumer loans in May 

Local banks sold almost RON 800 million worth of consumer loans in May, a six-month high and a RON 200 million increase from the previous month. The aggregated value of RON-denominated consumer loans reached RON 37.8 billion at the end of May, according to the National Bank of Romania (BNR).

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668,682 Romanians are more than 30 days behind in payments to banks 

The NPL rate dropped by 0.1 pp in April, falling to 9.26%, according to the National Bank of Romania (BNR). Compared to the corresponding month of 2016, the NPL rate is 3.85 pp lower.

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Investment News (2)

Bucharest City Hall could set up 30 recharging devices in public parking lots 

The Bucharest City Council is discussing a bill that would have the City Hall set up 30 recharging devices for electric cars in the city's public parking lots. The devices cost an estimated EUR 20,000 each. The number of electric cars moving on the capital's streets was close to 190 in March.

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Coca-Cola HBC Romania invested EUR 7 million in new production line 

Coca-Cola HBC Romania inaugurated on Friday a new bottling line at its Timisoara plant. The project was launched in November, 2016, and was completed at the end of May, at a total cost of EUR 7 million.

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Legislative News (2)

Decree sets up aid, rewards and scholarship fund 

The Cabinet passed an emergency decree setting up a number of funds at the disposal of the president, head of Senate, head of Chamber and prime minister. The total budget for these funds is up to RON 500,000 and the money can be used for aid, rewards and scholarships.

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Business community given three months to adapt to new Tax Code 

The Minister of Labor, Lia Olguta Vasilescu, stated during Friday's Cabinet meeting that she wanted the Tax Code amendments to come into force in three months, instead of six. The reason offered by the Minister was the need to implement other bills alongside the new tax rules, such as the payroll bill.

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Politics (2)

Orban vows to change payroll bill 

Ludovic Orban, leader of the National Liberal Party (PNL), stated that the party would amend the unified payroll bill, should it come to power. Orban complained that the bill increases salaries "without any analysis" and that it creates chaos.

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Ludovic Orban said new Ciolos party would be "uninspired decision" 

Ludovic Orban, leader of the National Liberal Party (PNL), stated it would be "an uninspired decision" of former prime minister Dacian Ciolos set up his own party. According to Orban, a new party would cause "further fragmentation" in local politics.

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