News

Daily Newsletter - 7 July 2017

Summary

FIC (1)

Business sector concerned with planned changes (Source: replicaonline.ro)

The Foreign Investors Council (FIC) is worried by the substantial changes to the governing program, announced recently. A speedy implementation of such fiscal policies without proper analyses, impact assessments and consultations will have a negative impact on the activity of all businesses in Romania in all sectors, large and small. In the past year, FIC members have argued repeatedly that Romania can become the 10th largest economy in the European Union in the next two decades but these kind of radical policy changes, that breed uncertainty, put Romania further away from that objective. The new measures which have a large potential impact are sending negative signals towards the business community and potential investors.

Business sector panics (Source: ziare-pe-net.ro)

Business sector panics (Source: ziarulevenimentul.ro)

Business sector panics over new fiscal revolution (Source: fiscalitatea.manager.ro)

Videoclip  (Source: DIGI 24)

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Macroeconomic News (3)

Local growth rate for food&beverage consumption is second highest in Europe 

Romania had the second highest growth in Europe for food&beverage sector, including restaurants, fast-food restaurants, cafes, tea parlors and ice cream shops, according to a study by Cushman & Wakefield. The 7.2% growth rate was second only to Turkey's.

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Resource productivity close to bottom 

Romania has close to the lowest resource productivity rate in the European Union. The national figure is EUR 0.7 per kilogram of raw materials used in 2016, according to Eurostat data. Surprisingly, the national resource productivity has been stagnating since 2001.

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ANAF paid RON 846.6 million in VAT 

The National Agency for Fiscal Administration (ANAF) returned to companies a total of RON 1.28 billion worth of VAT in June, up 66.3% year-on-year. The amount includes all the VAT payments resolved by reimbursement decisions.

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Financial News (4)

10% of Romanian banking system is high risk 

The National Bank of Romania (BNR) started implementing last year the European Banking Authority's guidelines for the process and practices of lender supervision. At the end of 2016, BNR concluded that 10% of the Romanian banking system had a high risk level.

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Central Depository announces Patria Bank equity increase 

The Central Depository recorded on July 5 the equity boost resulting from the Patria Bank and Banca Comerciala Carpatica merger. Patria Bank's new equity is RON 376.23 million, up from RON 220.27 million, according to a report sent to the Bucharest Stock Exchange (BVB).

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ING waives cash withdrawal fee 

ING announced that clients who receive their salaries into ING accounts and who make at least one payment per month using the bank's cards can withdraw cash from any ATM without paying a fee, regardless of which bank owns the ATM.

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Banca Transilvania's cards and ATMs won't work on Saturday night 

Banca Transilvania announced that its cards, ATMs and POS devices will experience a downtime on Saturday night, between 12 AM and 4 AM. The bank advised its clients to keep some cash on hand while its system is being updated.

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Investment News (2)

Forte Partners begins housing project 

Real estate developer Forte Partners will invest EUR 37 million in the Aviatiei Park residential project, located in Bucharest's Aviatiei neighborhoods. The company will begin the construction work this summer and more than 60 flats have already been reserved.

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Investment funds for non-farming projects depleted 

The Rural Investment Financing Agency (AFIR) announced on Thursday that it had depleted the entire budget for non-farming grants, far ahead of the July 31 deadline. Entrepreneurs applied for a total of EUR 148.2 million worth of funds, four times above this year's budget.

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Legislative News (2)

All government hiring to be suspended this year 

The Cabinet is planning to suspend until the end of the year any contests for occupying the central public administration's vacancies, according to a draft decree released for public debate via the Ministry of Regional Development's website.

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Deputy Chereches wants dual vocational education law amended 

Romania has the highest labor deficit in the region, while the number of children dropping out of school is rising. The situation has been ignored for years by the decision makers in charge of the education system.

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