Daily Newsletter - 1 April 2019


FIC (2)

Split VAT system to become fully optional

 The split VAT system will soon become fully optional, according to Daniel Anghel, Vice President FIC.


Daniel Anghel, Vice President FIC, discussed the amendments to Decree 114

Daniel Anghel, Vice President FIC, discussed the amendments to Decree 114. The draft decree containing the amendments was discussed at the Social Dialog Commission meeting on 27 March. 


Macroeconomic News (4)

MFP negotiates EUR 800 million loan with WB

"Thus, the framework of a EUR 800 million loan, which the Finance Ministry is negotiating with the World Bank, includes funds for the payment of additional services provided by family doctors to the public, as well as for community medicine, in order to ensure better access to primary health care and to make healthcare more efficient," the Ministry of Health reported.


Tariceanu makes new promises

Calin Popescu-Tariceanu, leader of ALDE, stated that the state budget would show a deficit of 2.76% of GDP and that, as a consequence, the public debt will fall. The statement was prompted by public concern over an issue of bonds worth EUR 3 billion on the foreign markets.


ANAF - New department could be transferred to MFP

 The department of the National Fiscal Admistration Agency (ANAF) tasked with issuing estimated tax resolutions and advance pricing approvals could be taken over by the Ministry of Finance, following the transfer to the Ministry of the complaint resolution department. The transfer is currently being analyzed by the Ministry of Finance, according to PwC consultants and representatives of the Coalition for Romanian's Development (CDR).


SMEs are major target for Romania and Bulgaria

Romania and Bulgaria have multiple opportunities that can be taken advantage of in bilateral and regional trade, while the stimulative business environment, as well as the fast pace of development and interconnection of the two economies allow for an increase in cooperation, especially in manufacturing, energy, transport, tourism and agriculture, according to Trade Minister Stefan-Radu Oprea.


Financial News (4)

Dumitru, Raffeisen: I don't think BNR will change the indicators

The National Bank of Romania (BNR) will most likely not change the key rate, the mandatory reserves or the reference rage at the April 2 board meeting, despite concerns over the inflation rate, according to Ionut Dumitru, Chief-Economist of Raiffeisen Bank.


ING Bank Romania limits cash withdrawals

ING Bank Romania notified its clients that cash withdrawals and deposits at ATMs will be capped at RON 15,000 per day, beginning with April 1. Clients who need to withdraw or deposit amounts exceeding RON 15,000 will have to contact the bank by phone.


ROBOR to be replaced on May 2

The Minister of Finance, Eugen Teodorovici, stated on Friday that the Cabinet had decided to replace the ROBOR rate used in loan contracts with an indicator based on the value of inter-bank transactions, beginning with May 2. The modification would apply to both new and outstanding loans. PM Dancila noted that amendments to Decree 114 had the approval of BNR and ARB.


Senate to vote on gold reserves bill

The Senate's roll features for Monday the bill drafted by Liviu Dragnea and Serban Nicolae and calling for the repatriation of Romania's gold reserves.


Investment News (1)

Cabinet approved RON 202 million investment program

The Cabinet approved on Friday a RON 202 million investment program featuring complex works on the Barzava River, on the Bocsa-Gataia-Denta sector, in the Caras-Severin and Timis counties. The purpose of this program is to lower the risk of flooding in the region, according to the Ministry of Waters and Forests.


Politics (2)

Rares Bogdan: After two years and four months of PSD rule, Romania is sad

Rares Bogdan, the candidate heading the National Liberal Party's (PNL) ticket in the European Parliament election, held a speech in Timisoara, urging people to vote. Bogdan criticized the PSD, saying PSD rule made Romania a "sad" country.


Joint declaration

Prime Minister Viorica Dancila and her counterparts from Greece, Bulgaria and Serbia signed a joint declaration at the end of Friday's meeting at Snagov Palace. The document stipulates the four countries' commitment to bilateral co-operation and EU enlargement by supporting Serbia's accession. According to a government press release, the joint declaration provides for the defense and promotion of European values, the rule of law, justice and fundamental rights, and the right to private property. The document also highlights the EU's increased commitment to the Western Balkans and the enlargement of the Union.


Social (2)

Pensioner purchasing power up 5%

The purchasing power of pensioners increased by 5% in 2018, according to the National Statistics Institute (INS). The growth rate is less than half of the 11.3% reported for 2017.


Inspection no longer mandatory for clunkers

The Minister of Environment, Gratiela Gavrilescu, said the regular technical inspection will no longer be mandatory for clunkers handed in under the Rabla program. "The order has been on the website for a week," said the minister.