News

Daily Newsletter - 9 May 2017

Summary

Macroeconomic News (4)

Romania to lose EUR 1 billion in transport funding (Source: profit.ro; Date: 2017-05-08; Author: Unspecified)

The European Commissioner for Regional Policy, Corina Cretu, stated at a press conference held on Monday that Romania would lose EUR 1 billion in EU funding for transport projects alone. "Transport has been our weakness for the past 10 years, unfortunately. Romania has the lowest transport spending percentage," said Cretu.

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Government sees mainly foreign risks (Source: bursa.ro; Date: 2017-05-08; Author: Unspecified)

The risks that could hurt the national economy and the economic growth effort are mainly foreign, according to the 2017-2020 convergence program. The government expects Great Britain's departure from the EU to have a moderate impact because bilateral trade between Romania and Great Britain amounts to only EUR 2.5 billion in exports and EUR 1.5 billion in imports.

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New way of paying VAT on procurement (Source: cursdeguvernare.ro; Date: 2017-05-08; Author: Unspecified)

The 2017-2020 Convergence Program adopted by the Cabinet on Friday features a system for paying the VAT in stages. The Minister of Finance, Viorel Stefan, explained the initiative to cursdeguvernare.ro, stating that the change is in line with EU directives and that it would not impact the business community.

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Hidroelectrica could surrender all earnings (Source: hotnews.ro; Date: 2017-05-08; Author: Unspecified)

The state budget is in such dire need of money that Hidroelectrica could end up surrendering all of last year's earnings as dividends. The Proprietatea Fund has already put the issue on the meeting agenda for May 26. The fund wants Hidroelectrica to pay RON 1 billion in earnings as dividends, plus another RON 1 billion from the company's reserves.

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Financial News (4)

BCR earnings down in Q1 (Source: profit.ro; Date: 2017-05-08; Author: Unspecified)

BCR posted RON 196.3 million in earnings for the first quarter of this year, down 38% from the corresponding quarter of 2016. The bank received no money from provisions following the unloading of NPLs, as it happened last year, while the operating revenues dropped 2.3% year-on-year.

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Mugur Isaresc, BNR Governor: We shouldn't kill off foreign currency borrowing (Source: zf.ro; Date: 2017-05-08; Author: Unspecified)

As foreign currency loans dropped toward 40% of the total portfolio, while foreign currency reserves consolidated "above adequate" and the loan portfolio structure continued to improve, the National Bank of Romania (BNR) decided to slash the minimum mandatory reserves for foreign currency loans, going from 10% to 8%.

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Klaus Iohannis asks Government and BNR to set Eurozone accession schedule (Source: cursdeguvernare.ro; Date: 2017-05-08; Author: Unspecified)

President Klaus Iohannis has asked the Government and the National Bank of Romania (BNR) to set a Eurozone accession scheduled as soon as possible. "The decision will not bring about the Eurozone accession immediately. From the technical point of view, we need years of preparations and, therefore, the sooner we set our goals, the better," said the President.

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Why is BNR generous with the banks? (Source: bursa.ro; Date: 2017-05-08; Author: Unspecified)

The National Bank of Romania's (BNR) decision to slash the minimum mandatory reserves for foreign currency liabilities from 10% to 8% even though the banking sector is doing very well has taken the market by surprise. Hundreds of millions are expected to leave Romania following this decision.

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Investment News (2)

Yildiz Entegre to open Arges county location (Source: news.ro; Date: 2017-05-08; Author: Unspecified)

Turkish company Yildiz Entegre announced on Monday that it would open a new timber processing plant in Oarja, Arges county. The EUR 150 million investment project is expected to create around 450 jobs. The company wants to start by making MDF panels, before moving to doors and laminated floor tiles.

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ALTEN to open new service center (Source: zf.ro; Date: 2017-05-08; Author: Unspecified)

Alten, an engineering and technology consulting firm, will open on May 10 a new location in Iasi. The new center will work on outsourced projects for clients from the automotive (Peugeot-Citroen, Renault, Jaguar), energy and bioscience (General Electric Power, GE Healthcare, Thorn Lighting) and defense (Airbus Helicopters) sectors.

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Legislative News (2)

Chamber's commissions to set debate date on Tuesday (Source: economica.net; Date: 2017-05-08; Author: Unspecified)

The Budget-Finance, Transport, Industry and Judiciary Commissions of the Chamber of Deputies, which are tasked with writing the report on the Automotive Civil Liability Law (LRCA) will decide on Tuesday the date when the bill and all the amendments will be discussed, according to Leonardo Badea, president of the Budget-Finance Commission.

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Senate sends pardon bill back to commission (Source: news.ro; Date: 2017-05-08; Author: Unspecified)

The Senate voted on Monday to send the pardon bill back to the Judiciary Commission in order to have it endorsed as sent by the Cabinet on January 31. PSD and ALDE senators supported the decision, while PNL and USR opposed it, demanding a floor debate and rejection of the bill.

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Politics (2)

PNL wants Dragnea and Grindeanu to submit blank resignations (Source: hotnews.ro; Date: 2017-05-08; Author: Unspecified)

The National Liberal Party (PNL) has urged Prime Minister Sorin Grindeanu and Chamber of Deputies President Liviu Dragnea to submit blank resignations in order to prove that they are not involved in the pardon bill "game", according to PNL's interim leader, Raluca Turcan.

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The true reason behind the Dragnea-Nicolae fight (Source: euractiv.ro; Date: 2017-05-08; Author: Unspecified)

The leader of the Social Democratic Party (PSD) and the president of the Senate's Judiciary Commission, Serban Nicolae, are locked in combat after the latter managed to tack onto the pardon bill an amendment exempting suspended sentences from pardons. The amendment would leave Dragnea's own sentence out of the scope of the bill.

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Social (1)

Depression rising in Romania (Source: adevarul.ro; Date: 2017-05-08; Author: Unspecified)

The most common suicide measure in Romania is hanging, followed by jumping from high places and in front of vehicles. The third most common option is taking pills, according to a report from the National Forensic Institute (INM).

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