News

Daily Newsletter - 10 August 2018

Summary

Macroeconomic News (2)

Confidence in the public pension system is not enough

Confidence in the public pension system, no matter how generous and fair this system would seem, is not enough from the point of view of the risk-yield ratio. Public pension deficits are a reality for the entire civilized world, according to economic analyst and professor Adrian Mitroi.

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Trade deficit up 8% in H1

The trade balance deficit for the first six months of this year is EUR 6.3 billion, up EUR 483.3 million on an annual basis, according to the National Statistics Institute (INS). However, exports are growing faster than imports.

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Financial News (3)

New stocks to be added to BET index

The Bucharest Stock Exchange (BVB) board has approved the inclusion of new stocks in the BET and BET-TR indexes in order to provide investors with a more diversified view of the national market. The index was expanded in October, 2016, going from 10 stocks to 15.

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MedLife reports 24% increase in turnover

Medical services group MedLife posted a RON 373.5 million turnover for the first half of this year, up 24% from the previous year, according to a report sent to the Bucharest Stock Exchange (BVB). The operating profits dropped 4.5% to RON 17.06 million.

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Raiffeisen Bank earnings exceed expectations

Austria's Raiffeisen Bank International logged better than expected earnings for the second quarter, thanks to very high releases of loan-loss provisions that suggested the economic conditions of Eastern Europe continue to improve. The bank's earnings for the three months from April to June fell 2.9 percent to EUR 357 million.

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Investment News (1)

Real estate investment down 27%

Investment on the Romanian real estate market dropped 27% in the first six months of this year, down to EUR 386 million. However, the national market was more active compared to those of Hungary and Slovakia, compared to a report released by Cushman & Wakefield Echinox.

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Legislative News (2)

Telephony services providers to allow access to own infrastructure

The providers of landline and mobile telephony services with significant power on the local market will have to allow access to their own infrastructure and the use of specific network and infrastructure elements beginning with May 1, 2019. These operators will also have to apply equivalent interconnection conditions to all those who apply for or benefit from interconnections, according to ANCOM.

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Cabinet working on new car tax

The Cabinet is working on a new method to penalize the owners of polluting cars. The Minister of Environment, Gratiela Gavrilescu, said the bill would be ready by the end of the year. Media rumors put the new tax between EUR 50 and EUR 3,000 in March.

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Politics (2)

USR Diaspora files complaint against Maria Grapini

USR Diaspora has filed a complaint with the National Anti-discrimination Council (CNCD) regarding the message reposted on Facebook by MEP Maria Grapini. The message stated that diaspora Romanians attending the August 10 rally are stupid. USR Diaspora called the MEP's statements "designed to humiliate and demoralize those people".

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PNL compares pension bill with Ceausescu's last attempt to buy support

"Liviu Dragnea sent Mrs. Olguta Vasilescu to announce the pension bill now, before the rally. We've seen this before, in 1989, when Ceausescu thought that by increasing pensions he could quench the thirst for justice and freedom. Just like before, the rally will not be influenced by such messages because it signifies the rebellion of those who have invested everything in Romania: youth, hope, ideas, money. And who were cheated," said PNL First Vice-President Raluca Turcan.

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Social (1)

New pension bill released for public debate

The new pension bill was released for the 30-day period of public debate, before the bill is sent to the Parliament. The first novelty is the addition of master's and PhD periods to the contribution years, provided that diploma holders can prove at least 15 years of contributions to the pension system.

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