News

Daily Newsletter - 24 May 2019

Summary

FIC (2)

FIC asks Romanians to vote on Sunday

Predictability and legislative stability are key principles of the European Union, without which its fundamental values - human rights, freedom, democracy, equality, prosperity and the rule of law - would not be possible. On May 26 we also vote in the elections to the European Parliament and for the future of Europe.

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Teodorovici: I have asked the European Commission to keep split VAT completely optional

Daniel Anghel, Vice President of the Foreign Investors Council (FIC), said in early April that the Ministry of Finance's intention was to keep the VAT split mechanism optional. "We understand that the split VAT mechanism will continue and will become entirely optional," said Daniel Anghel.

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Macroeconomic News (2)

Farmers can insure crops and livestock through PNDR 2020

The Rural Investment Financing Agency (AFIR) provides financial support for crop, livestock and plant insurance by active farmers through Sub-measure 17.1 of the 2014-2020 National Rural Development Program (PNDR 2020), the available budget being EUR 42.79 million. According to a press release, the application session will be open between April 1 and November 30, 2019.

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Romania pays high interest rates on debt

Romania and Hungary pay the highest interest rates as a percentage of their public debt, according to the European Commission's Economic and Financial Affairs data. Romania paid last year interest equal to 3.8% of its debt at the end of 2017. Hungary is the only other EU country to reach this figure, while the European average was 2.3%. Thus, despite having a total debt of less than 40% of GDP, Romania pays the highest interest rates in the EU, as a percentage of debt.

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Financial News (3)

BNR fails to increase interest rates at 4% inflation

With inflation rising much higher than expected, the National Bank of Romania (BNR) chose not to raise the key interest rate, preferring instead to strengthen monetary policy through stricter liquidity control that would lead to higher interest rates on the interbank market. However, interest rates are shrinking, suggesting that the market does not really believe in BNR's pledges, according to analysts. BNR attracted around RON 7.6 billion from banks on Monday, through one week deposits at the key interest rate of 2.5%.

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Senator Zamfir tries again

Senator Daniel Zamfir (ALDE) has filed a bill featuring the very regulations declared unconstitutional by the Constitutional Court of Romania last year, such as the interest rate caps, contentious withdrawal, and debtor relief for leasing contracts. The new bill even tries to ban foreign currency loans, while converting all the existing ones to the national currency.

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Cabinet to modify "Prima Casa" program

Prime Minister Viorica Dancila announced that the Cabinet was discussing a new project called "A House for Each Family", a social version of the "Prima Casa" program. The new program would feature an 80% guarantee for housing loans, low interest rates for families with children and for disabled individuals, and no management fees for debtors.

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Investment News (1)

MAP invested RON 52.78 million in Suceava county

The total value of the investments carried out by the Ministry of Waters and Forests (MAP) in its areas of responsibility in Suceava County this year is RON 52.78 million, of which RON 23.76 million went to water management and RON 29.02 million to forests, the Ministry announced. Minister of Waters and Forests Ioan Denes was in Suceava County on a work visit on Wednesday

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Legislative News (2)

Cabinet prepares for private pension fund departure

The Cabinet adopted a decree on Thursday allowing the FGDSPP to take over pension funds as a special administrator, in case the private pension fund managers decide to leave Romania.

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Document regulating Uber, Bolt and Clever

Ridesharing services can only be provided by authorized companies, and cars providing such services must display 10 cm round badges on their windscreens and rear windows, on the right-hand side, according to a decree regulating this field. The Cabinet is expected to approve this decree in the coming days. Drivers failing to display such badges will be fined up to RON 9,000.

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Politics (2)

President Iohannis: On Sunday evening, we'll know if the winner is pro-European Romania or anti-European Romania

President Klaus Iohannis said in Cluj, on Thursday, that "on Sunday evening, after the European Parliament election, we'll know if the winner is pro-European Romania or anti-European Romania".

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Kelemen Hunor: UDMR stopped supporting the government

Kelemen Hunor, president of the Democratic Union of Romanian Magyars (UDMR), announced on Thursday that the party had ceased supporting the government "until the Uzului Valley cemetery situation is addressed".

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Social (2)

EUR 100 million for practical courses

Pre-college vocational education will benefit from EUR 70 million in funding for practical courses that would see students do stints in various companies. The universities will get EUR 30 million under the same program, according to the Ministry of European Funds' (MFE) call for projects.

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The Ministry of Environment launches second "Rabla" for home appliances program

The Ministry of Environment launched in Prahova County on Thursday the second "Rabla" program for home appliances. The purpose of the program is to grant financial incentives in order to encourage households to turn in their old home appliances and purchase new and energy-efficient ones. Attending the event, the Minister of the Environment, Gratiela Gavrilescu, said she also considered the launching of a financing guide for public institutions.

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