Daily Newsletter - 10 August 2017


Macroeconomic News (2)

PM wants ANRE investigation 

Prime Minister Mihai Tudose stated on Wednesday that the Government would ask the Parliament to investigate the National Energy Regulatory Authority (ANRE) over the recent electricity price increases.


Exports up 2.5%

The exports of Romanian goods increased only 2.5% in June, reaching a total of EUR 5.07 billion, according to the preliminary data released by the National Statistics Institute (INS). Imports soared 14.2% on an annual basis.


Financial News (5)

MedLife posts threefold increase in profits 

MedLife, leader of the national market for private medical services, reported for the first six months of this year a turnover of RON 301 million, up 28.8% on an annual basis, and RON 6.4 million in earnings, up threefold from H1, 2016, according to the report sent to the Bucharest Stock Exchange (BVB) on Wednesday.


Banks grant risky loans 

The loans currently being granted by the commercial banks are very likely to end up as NPLs because the interest rate is at an all-time low and because the Government's fiscal and salary policies are marked by a high degree of uncertainty.


BNR caps interest rates 

The National Bank of Romania (BNR) has issued an order capping the interest rates charged by non-banking financial institutions (NBFI) to 32.5% for loans maturing in more than 90 days. The NBFIs also have to provide RON 67 in additional capital for every RON 100 loaned.


ASF eliminated 1% fee 

The Financial Supervisory Authority (ASF) announced on Wednesday that it had decided to eliminate, beginning with October 1, the 1% fee charged for the operating revenues of brokers operating on the Romanian market.


Bulgarians managed to make "manele" singers pay their taxes 

"The Coalition for Romania's Development, a coalition that includes both Romanian and foreign investors, met on Thursday with Prime Minister Tudose. There was even a detailed letter, with addenda and explanations. He wouldn't listen," said Gabriel Biris.


Investment News (2)

Government, Huadian resume negotiations 

The Minister of Energy, Toma Petcu, met on Wednesday with a delegation from Chinese company China Huadian Engineering. The two sides have resumed the talks regarding the construction of a new 600 MW unit at the Rovinari plant, part of the Oltenia Energy Complex (CEO).


Foreign investors warm up to local stock market 

Foreign investors have warmed up to the local stock market, which is very close to acceding to the emerging market status. "The companies listed on the Romanian market have performed remarkably well. The MSCI Romania Total Return index is up more than 150% in five years," said Carsten Hesse, EME Equity Strategist at German investment bank Berenberg.


Legislative News (2)

Cabinet's strategy 

The new Tax Code amendments prepared by the Cabinet feature a series of tax breaks: an income tax exemption for doctors, the elimination of the dividend tax, a property tax exemption for those who actually work their farmland.


Companies forced to hire disable people 

Companies will no longer be allowed to buy products and services provided by disabled people in order to avoid paying a tax designed to support the latter. The only option left for companies looking to avoid the tax is to actually hire disabled people.