News

Daily Newsletter - 6 November 2017

Summary

Macroeconomic News (3)

Wide surprise: CNP increases the growth forecast for 2017 by 0.5%. A sublime explanation 

The National Prognosis Commission, institution subordinated to the Government, increased the economic growth figure for this year to 6.1% from 5.6%, announced just a few weeks ago in the preliminary autumn prognosis, in the autumn prognosis which is the base for the elaboration of 2018's budget. Thus, the value used as a benchmark for GDP 2017 (including for the deficit of the general consolidated budget, which threatens to go up above 3%) rose again. Departing from RON 815.2bn at the beginning of the year, it reached RON 837.1bn after the summer holiday and now the RON 842.5bn level is framed.

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The new calculations regarding the impact of the measures announced by the Government on wages. The three possible scenarios for employees and employers after the introduction of the solidarity tax and the decrease of tax at 10% 

Companies begin to calculate which is the impact of the fiscal amendments announced by the PSD Government regarding taxing wages and transferring the contributions from the company to the employee. Ziarul Financiar presented Monday the four possible scenarios based on the information available until then and on the counts of Terapia Cluj, for a gross salary of RON 4000, both for employees and employers. Meanwhile, the Government confirmed a series of amendments, such as reducing the profit tax at 10% and a 2.25% solidarity tax along with the transfer of social contributions from the employer to the employee.

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The Fiscal Council's opinion about the Government's proposal to amend the Fiscal Code is negative 

The Fiscal Council's opinion about the Government's proposal to amend the Fiscal Code is negative, arguing that the impact of the package of fiscal amendments implies an about RON 5.2bn loss.

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Financial News (5)

BCR's net profit fell over 51% in the first nine months, at 122m euros 

Banca Comerciala Romana (BCR), member of Erste Group, achieved a net profit of RON 559.8m (121.8m euros) in the first nine months of this year, down by over 51% compared to the net profit recorded in the same period of last year, of RON 1.145bn, according to the data announced Friday by the bank. "A fall determined by the basic effect resulted from substantial retakes of risk provisions and from the achievement of some consistent returns from selling some stakes in the first nine months of 2016, is recorded compared to the same period of last year", a report of the bank shows, according to News.ro.

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Moody's has improved Raiffeisen Bank International rating to "A3" 

Moody's Investors Service reviewed upwards, from "Baa1" to "A3", the ratings attributed for the debts and long-term deposits of the Austrian group Raiffeisen Bank International AG (RBI) and maintained the perspective of these scores at stable, a communication of the financial assessment agency shows. Also, Moody's improved the BCA rating (financial solidarity) of RBI from "ba2" to "ba1", Friday, and the adjusted BCA rating, from "ba1" to "baa3", Moody's report shows.

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IN THE FIRST NINE MONTHS, BCR's net profit dropped by 51%, at 123m euros 

Banca Comerciala Romana (BCR), member of Erste Group, achieved a net profit of RON 559.8m (121.8m euros) in the first nine months of this year, down by over 51% compared to the net profit recorded in the same period of last year, of RON 1.145bn, according to a press source. "A fall determined by the basic effect resulted from substantial retakes of risk provisions and from the achievement of some consistent returns from selling some stakes in the first nine months of 2016, is recorded compared to the same period of last year", a report of the bank shows, according to News.ro.

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BRD reported double profit in nine months, the revenue reaching RON 1.043bn. The bank closed 29 agencies this year. The capital's profitability rose to 20%, from 12% 

BRD, the third bank in Romania, reported Thursday morning on the stock exchange the financial results for nine months of 2017, indicating a net profit per bank worth RON 1.043bn, up from RON 586.3bn in nine months in 2016. The profit of BRD group was RON 1.065bn, up from RON 606m. The bank had net revenues of RON 1.962bn, down 2.7%, but it succeeded to mark earnings from provisions of RON 281m compared to a RON 349m minus in the same period of last year.

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Banca Transilvania launches a sticker for contactless payments 

Banca Transilvania launches BT Pay Sticker, which can replace the debit or credit card in contactless payments to traders. The sticker is a premiere on the Romanian market, according to the bank. It can be attached to a flat surface - phone or wallet - and can replace both the debit cards and credit cards from the bank's portfolio.

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Investment News (1)

Cupru Min prepares RON 65m investments next year, out of which two thirds target the environment 

Cupru Min SA Abrud company, controlled by the Ministry of Economy, plans RON 65m investments for next year, out of which nearly two thirds focus on the environment, and its main goal is to finish the acid waters neutralization installation, the Ministry of Economy shows in a communication published on its own site. "Another objective is ore improvement, by recovering rare metals, such as molybdenum, as well as iron", the communication shows.

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Politics (2)

Tensions inside the parliamentary majority. "There are many who eat public money for nothing" 

PSD faces increasingly more divergent opinions among its own parliamentary coalition because of its ministers' activity, of the fiscal-budgetary measures announced by Tudose Government, as well as of how mayors will be elected in 2020. Eugen Teodorovici, PSD parliamentarian and head of the Budget-finance commission from the Senate, had a tough sally against Felix Stroe, party colleague and transport minister, he criticized for having relieved the chiefs of several institutions of their office in the past days, such as the case of the former Metrorex director. "If he stays one or two months at the Ministry of Transports, Felix Stroe fires everyone. These are populist decisions", Teodorovici, one of the objectors from PSD of this autumn's fiscal-budgetary measures, specified.

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The electors from Deva and 16 localities, waited at the polls within partial elections 

Registered voters are waited to express their option at the local partial elections which will take place Sunday in localities from 13 counties. The electoral campaign for the local partial elections ended Saturday, at 7 o'clock. The Government set the date of 5 November for organizing the local partial ballot for electing the mayor in 16 localities in which this position is vacant, as well as for electing the local council in a commune.

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