News

Daily Newsletter - 4 September 2017

Summary

Macroeconomic News (4)

Tariceanu says dividend tax to be eliminated when budget situation allows it 

The decision to eliminate the dividend tax will be taken this year and will come into force in 2018, according to Prime Minister Mihai Tudose.

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Ministry of Energy wants energy strategy updated 

The Ministry of Energy has set up a work group that would focus on updating the National Energy Strategy by mid-October. The updates will include top priority investment targets, such as the third and fourth reactors of the Cernavoda Nuclear Power Plant, the Tarnita hydro power plant and a new generation unit for C.E. Oltenia.

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PM Mihai Tudose: We have the lowest VAT collection rate 

Prime Minister Mihai Tudose stated that Romania has the lowest VAT collection rate (75%), which means that 25% of the VAT paid by Romanians never reaches the state budget. "We're talking about huge numbers, billions," said the PM.

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Split VAT bill introduces many contraventions 

The new split VAT payment system is complicated and it doubles the number of banking transactions that VAT payers must make. At the same time, the bill introduces a large number of contraventions for those who make mistakes during the procedure, according to tax adviser Adrian Benta.

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Financial News (4)

Political speculations over banking asset tax led to stock market rout 

Any kind of tax on banking assets would hurt the already massively underdeveloped banking sector even more, according to economic analyst Aurelian Dochia, an administrator with BRD-Groupe Societe Generale.

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BNR reserves up almost 1% 

The currency reserves managed by the National Bank of Romania (BNR) stood at EUR 34.9 billion at the end of July, up 0.92% on a monthly basis, according to BNR data. This month, BNR will have to pay out EUR 1.38 billion in public debt installments.

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Bancpost back on profit 

Bancpost has posted EUR 3.2 million in pretax earnings for the first half of this year, following a drop in NPL provisions and operating expenses, according to the financial report issues by Eurobank, Bancpost's parent-bank.

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ANPC fined banks RON 2.6 million 

The National Consumer Protection Authority (ANPC) issued RON 2.6 million worth of fines to banks and NBFIs in the past two years. The fines were the result of irregularities discovered by ANPC, according to the latest report from the Authority.

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Investment News (1)

McDonald's opens second Bacau restaurant 

Fast-food chain McDonald's has opened its second location in Bacau, a EUR 550,000 restaurant with a staff of 40. "Our chain has expanded to 69 restaurants and this is the first opening this year. We have 22 development and investment projects that will be completed this year," said Daniel Boaje, CEO of Premier Restaurants Romania.

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Legislative News (1)

Top priorities 

The family referendum could be organized this autumn, according to statements made on Saturday by Liviu Dragnea, after a meeting of Social Democratic leaders held in Mamaia. The PPP law, the prevention law, the sovereign fund project, the judiciary law, the pension law, the energy law and the lobbying law are the ruling coalition's top priorities this autumn.

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Politics (1)

Ponta compares Dragnea with Hugo Chavez 

Former prime minister and leader of PSD Victor Ponta announced on Sunday his decision to join the Pro Romania party. Ponta also took the opportunity to blast PSD leader Liviu Dragnea, whom he compared to Colombian drug lord Pablo Escobar and Venezuelan dictator Hugo Chavez.

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