News

Daily Newsletter - 5 October 2017

Summary

FIC (1)

FIC: Romania can become one of top 10 EU countries in 20 years, but that requires daily work (Source: agerpres.ro)

Romania's place is among first ten economies of the European Union (EU) and we can get there in 20 years' time if we take certain measures to be implemented day in, day out, Eric Stab, Vicepresident of the Foreign Investors Council (FIC), told a news conference on Tuesday.

FIC: Romania can become one of top 10 EU countries in 20 years, but that requires daily work (Source: nineoclock.ro)

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Macroeconomic News (3)

The real estate market and the economic growth make Romania a paradise for DIY. Leroy Merlin wants 10 stores in Bucharest 

"DIY in Romania is a never ending story. Conditions in Romania are excellent. We have two figures growth per year. Romanian economy grows soundly and the real estate market gives us long-term confidence. We bank on 10 million clients in 2017", Lamy stated today within a conference. On this occasion, the head of the second DIY retailer after Dedeman, Paval brothers' brand, disclosed a part of the French's plans to expand in Bucharest and in other cities in the next years.

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Global competitiveness index: Romania falls by six positions in the top of the most competitive economies 

Switzerland, the United States and Singapore are the most competitive economies globally, according to Global Competitiveness Index 2017-2018 report, while Romania ranks 68th in a top made of 137 countries, down 6 positions compared to the place held during 2016-2017.

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Retail, up 

The turnover in retail rose 9.3% in the first eight months of this year compared to the same period in 2016, mainly as an effect of the sales of non-food products, the data of the National Institute of Statistics reveal. In August 2017, the volume (except trade in cars and motorcycles) rose 7.4% compared to the previous month.

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Financial News (3)

The first effect: 3-month Robor, basing on which the interests in the most loans in lei are calculated, falls slightly, at 1.79%, after NBR lent to banks. There were 15 consecutive days of growth 

3-month Robor index, basing on which the interests in the most loans in lei are calculated, fell slightly today, at 1.79%.

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Prima casa lowers its ceiling gradually. What alternative variants the banks have prepared 

Banks come with alternative products to Prima Casa loan, the program lowering the guarantee ceiling gradually over the next years. The competition is increasing on the banking market. This year, the funds for Prima Casa guarantees finished and the Credit Guarantee Fund for SME contends they will not be supplemented anymore, as it happened in the previous years.

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ROBOR FEVER - TREATED BY NBR WITH A DOSE OF LIQUIDITY SHOCK Piperea: "Isarescu blames the Tax Authority for the increase in interests" 

3-month Robor index, basing on which the interests for the most loans in lei are calculated, reached the 1.79% level, after 15 consecutive days of growth, according to the data published today by the National Bank of Romania (NBR). 3-month Robor is the main index basing on which the variable interests in loans in lei are calculated. The indicator reached 1.8%, yesterday, the highest since 25 November 2014.

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Investment News (2)

Subway has opened its 37th restaurant in Romania. Other two units will be inaugurated by the end of the year 

Better Brands, one of Subway franchisees with multiple units in Romania, has opened a new unit in Bucharest, following an over 120,000 euros investment, and other two are to be opened by the end of the year. With this new restaurant, Better Brands reaches an investment worth approximately half a million euros in Subway concept. The company's plans also provide other medium-term openings, as well as continuing to make significant investments in the office or home delivery segment and catering.

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Romania is at a great distance from Poland and the Czech Republic in real estate investments, mainly in offices, but there are good perspectives for the next 24 months 

Romania reached a volume of investments of about 400m euros on the real estate market in the first semester of the year, one quarter after Poland (1.5bn euros) and at a greater distance from the Czech Republic (2bn euros), competitor countries in investment attractiveness in CEE, but analysts appreciate that the perspectives are promising because the yields (the benefit generated by an investment) for first-class offices in Romania are 7.5%, compared to 5.5% in Poland and 4.85% in the Czech Republic.

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Legislative News (1)

Senator Teodorovici announces PSD's political decision: split VAT project will be voted in the Parliament in the form decided by the Government 

The draft ordinance on the split VAT will be voted in the Parliament in the form decided by the Government despite the amendments proposed by the Budget Commission from the Senate, Eugen Teodorovici announced Tuesday, cited by Agerpres, at the end of a group session of PSD senators.

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Politics (2)

PSD leaves UDMR high and dry 

UDMR's draft law providing lowering the representation threshold from 20% to 10% for using maternal language in the public local administration was dismissed Wednesday by the Chamber of Deputies, after 256 elected representatives voted against and only 21 for, although the PSD-ALDE majority had negotiated with the Hungarian party to support the initiative with a 15% threshold, according to some political sources.

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Nicolicea: The Legal Commission proposes 14 days for the investigation in Rovana Plumb's case 

The Legal Commission of the Chamber of Deputies decided Wednesday to propose to the Permanent Bureau to approve the period of 14 days for conducting the investigation regarding DNA's request to approve the criminal prosecution of the former environment minister Rovana Plumb and the management of the Chamber is to decide whether to grant other 14 days for drafting the report in this case.

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