News

Daily Newsletter - 8 March 2017

Summary

Macroeconomic News (5)

Medical salaries to go up on January 1, 2018 (Source: news.ro; Date: 2017-03-07; Author: Unspecified)

The salaries paid to medical employees will go up on January 1, 2018, and not progressively over a number of years, while some employees will see up to 110-120% increases. Food vouchers will be issued beginning with July 1, 2017, while the other bonuses will be implemented gradually until 2021, according to Iulian Pope, first vice president of the Sanitas Federation.

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Business leaders urge Cabinet to use basic math before increasing salaries (Source: profit.ro; Date: 2017-03-07; Author: Unspecified)

The entrepreneurs and managers who are part of the Romanian Business Leaders Foundation have reacted to the salary increases announced by the Cabinet with an open letter to PM Grindeanu and the Ministers of Labor and Finance. RBL urged the officials to put themselves in the shoes of entrepreneurs and consider the effects of their decisions.

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MFP suspends hiring and promotions (Source: bursa.ro; Date: 2017-03-07; Author: Unspecified)

The Ministry of Finance (MFP) has decided to suspend the filling of vacancies and the promoting of personnel at both headquarters and the institutions under its control. "The measure was taken in order to meet the payroll approved for this year," noted a press release.

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When high economic growth disappoints (Source: euractiv.ro; Date: 2017-03-07; Author: Unspecified)

The analysts were surprised last month to see the GDP grow more than expected in the fourth quarter of 2016. However, the report published on Tuesday by the National Statistics Institute (INS) disappointed them. The report showed that consumption was roughly unchanged and investments were down, which means that the GDP growth came mostly from stocks.

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Detailed alarm (Source: cursdeguvernare.ro; Date: 2017-03-07; Author: Unspecified)

The National Statistics Institute (INS) conformed the 4.8% growth rate posted for last year in the first preliminary report. The seasonally-adjusted growth rate was 1.3% for the fourth quarter of 2016, a three-year high.

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Financial News (3)

Seven names on CEC Bank short list (Source: economica.net; Date: 2017-03-07; Author: Unspecified)

Government sources say that the Ministry of Finance has set up the commission tasked with selecting the next CEC Bank board. The candidates have 15 days at their disposal to file letters of intent, which will be followed by separate interviews.

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Romanian banks pay tax only if they feel like it (Source: bursa.ro; Date: 2017-03-07; Author: Unspecified)

Romanian banks pay tax only if they feel like it thanks to the very complicated profit reporting system. Sources say that some banks haven't paid the profit tax in ten years by taking advantage of the unlimited deductibility of NPLs and reporting losses year after year. As long as the state pays above market interest rates on bonds, the banks see no reason to credit the private sector.

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Alpha Bank enters German retail deposits market (Source: zf.ro; Date: 2017-03-07; Author: Unspecified)

Alpha Bank, the biggest Greek bank operating in Romania, has signed a deal with fintech company Deposit Solutions in order to enter the German market for retail deposits. "We are diversifying our financing sources by going into the German retail deposits market. We will be able to finance the Romanian economy even more by tapping and using foreign resources," said executive president Sergiu Oprescu.

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Investment News (2)

Impact to invest EUR 500,000 in access road (Source: economica.net; Date: 2017-03-07; Author: Unspecified)

The forest trail used to access the Greenfield residential ensemble was closed last month and residents had to spend two hours driving the 2 kilometers separating them from the nearest road. Impact will spend EUR 500,000 in the medium-term in order to build two access solutions.

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GreenWeee invests EUR 3.5 million in new electric waste recycling plant (Source: zf.ro; Date: 2017-03-07; Author: Unspecified)

GreenWeee, a member of the integrated recycling group Green Group, will invest EUR 3.5 million in a new recycling plant for electric and electronic waste. This project will triple the company's capacity to handle waste.

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Politics (1)

Klaus Iohannis to be accused of abuse (Source: evz.ro; Date: 2017-03-07; Author: Unspecified)

The Chamber of Deputies and Senate will gather on Wednesday for a joint session in order to pass, at the request of the PSD and ALDE leaders, a statement accusing President Klaus Iohannis of abusing the powers of his office and usurping the Parliament's prerogatives in connection with the Emergency Decree 13 scandal.

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Social (2)

Minister of Labor to be picketed (Source: adevarul.ro; Date: 2017-03-07; Author: Unspecified)

Police officers are planning to picket the Ministry of Labor because they are not happy with the salary negotiations. The protests are scheduled for March 23 and 24.

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20% of Romania's unemployed use Internet to look for work (Source: zf.ro; Date: 2017-03-07; Author: Unspecified)

Only 20% of Romania's unemployed use the Internet to look for work and only 5% of Romanians download official documents from the authorities' websites, according to a report published on Tuesday by the World Bank.

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