News

Daily Newsletter - 3 March 2017

Summary

Macroeconomic News (4)

Cabinet prepares fiscal revolution 

The Cabinet is preparing to amend a series of laws in order to direct all income taxes to the local administrations, beginning with January 1, 2018, according to the Minister for Regional Development, Public Administrations and European Funds, Sevil Shhaideh.

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Industrial production prices up 1% in January 

The industrial production prices went up 1% in January, compared to the previous month, according to a press release from the National Institute for Statistics (INS).

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Romanians not confident about country's general direction 

The general consolidated state budget showed in January that Romanians are not very confident about the country's general direction, according to Dragos Anastasiu, president of the Romanian-German Chamber of Commerce and Industry (AHK). While revenues dropped 6% and expenses increases by 3.5%, the budget showed a surplus.

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US Chamber of Commerce says state budget marred by vulnerabilities 

AmCham Romania said the state budget for 2017 is marred by vulnerabilities, such as an overly optimistic revenue projection and the taking of future pledges in the absence of multi-year budgets, which could push the budget deficit above 4% of the GDP.

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Financial News (4)

Romania leads CEE index of NPL sales 

Romania reported for 2015 and 2016 the highest NPL sales of Central and Eastern Europe, according to the annual report released by consultancy firm Deloitte. The national banking system posted EUR 3.5 billion worth of NPL sales for the two years and also profits worth EUR 1 billion for each of the two years. Sergiu Oprescu, chairman of the board at ARB, said the national banking system is due for a stress test, but nobody has an exact timeframe for it.

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BCR, Banca Transilvania and BRD held 42.5% of banking system's assets last year 

BCR, Banca Transilvania and BRD held 42.5% of banking system's assets, almost 40% of loans, more than 48% of deposits and approximately 70% of profits last year. BCR retained its leading position, while expanding its market share to 16.5%. However, BRD was overtaken by Banca Transilvania and fell to third place.

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Court of Accounts loses BCR BpL lawsuit 

The Bucharest Court of Appeals ruled in favor of BCR Banca pentru Locuinte in the lawsuit against the Court of Accounts (CC). CC had accused the bank of having accepted underage and elderly clients in breach of the law, resulting in the illegal cashing of the premium offered by the government. The total damages were estimated at EUR 60 million.

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Banks treat customers poorly 

Romanian clients are treated poorly and the quality of services - whether banking, hospitality, telecom, taxi or education - is still minimal. Mystery Shopping studies have shown that the local banks are not too keen on friendliness and professional attitudes.

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Investment News (2)

Optical Network to open 10-15 new stores 

Optical Network, a dealer and retailer of optics products, is planning to open 10-15 new stores, while also considering some potential acquisition targets. The company operates stores bearing the OPTIblu and Klarmann brands and sell its wares online via conga.ro.

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Romanian and Serbian governments want to build highway by 2025 

Romania and Serbia will cooperate to implement the feasibility study regarding the planning and designing of a highway linking Timisoara and Pancevo. A memorandum was approved at the Cabinet's Thursday meeting regarding the negotiation and signing of a cooperation protocol between the two governments.

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Legislative News (1)

Romania against profit shifting 

Romania joined the states and jurisdictions that fight against profit shifting, according to a press release. The Cabinet approved yesterday the country's joining of the forum tasked with implementing the Base Erosion and Profit Shifting Project.

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Politics (1)

PSD wants President to hold talks with parties 

Liviu Dragnea, leader of the Social Democratic Party (PSD), said he would ask President Klaus Iohannis to begin talks with the political parties regarding Romania's role in the debates over the European Union's future.

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