News

Daily Newsletter - 10 October 2018

Summary

Macroeconomic News (4)

Romania's country brand up 27%

Romania ranks 45th in an index of 100 country brands, up from 49 in 2017. The country brand surged 27% to USD 222 billion, according to a report from US consulting firm Brand Finance. However, Romania is still lagging behind Iran, Colombia, Vietnam and Bangladesh.

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IMF revised Romania's growth forecast

The IMF has revised its estimate for Romania's economic growth, slashing this year's figure from 5.1% to 4%. The new figures are featured in the latest report on the international economy. The 1.1 pp drop is a result of the fading influence of 2017 fiscal stimulus measures.

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EY: VAT rate cut would help, but clarifications are needed

The Government's decision to slash the VAT rate by 5% for a number of businesses should produce positive effects, at least from a tax collection point of view, but some clarifications are necessary, according to Adrian Teampau, Associated Partner Indirect Tax, EY Romania. Teampau added that discrimination among some companies is bound to happen.

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Local outsourcing sector employs 1.5% of active population

Approximately 1.5% of Romania's active population, around 125,000 people, is working in the business services sector, according to estimates released by the Business Service Leaders Association (ABSL). A study conducted by the association with the help of consulting firm KPMG showed that the outsourcing sector had generated approximately EUR 4 billion in revenues in 2017.

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Financial News (3)

BCR launches Grant Management Account

BCR announced the launching of the Grant Management Account, a product designed for freshly established companies that apply for grants in order to finance projects that require double management. The special account can be used for the joint management of subsidies by the beneficiary and the administrator.

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BNR to decide debt caps next week

The National Bank of Romania (BNR) will make next week its final decision on the new retail borrowing regulations. The new regulations will introduce indebtedness caps for the first time since 2007 and will come into force on January 1, 2018.

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Gheorghe Piperea: "The boomerang effect of debtor relief"

The boomerang effect of debtor relief is limited to abusive and bad faith clients, according to lawyer Gheorghe Piperea. The lawyer is the man who wrote the original bill. "Most consumers are afraid to resort to debtor relief on grounds that the notification could turn against them in a boomerang effect," wrote Piperea.

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Investment News (1)

Altex building EUR 37 million logistic center outside Bucharest

Retailer Altex Romania will build a new logistic center in Dragomiresti Vale, outside Bucharest. The EUR 37 million project will be built on a 15.2-hectare property bought for around EUR 5.5 million. "80% of the financing required for the first stage of the project will be provided by EximBank, with the stage itself scheduled for completion in the first quarter of 2019," reads a joint press release published by Altex and EximBank.

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Legislative News (2)

Cabinet to discuss pension bill

The Ministry of Finance has approved the draft pension bill. Minister Teodorovici announced that the Cabinet would take up the bill this week.

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Minister of European Affairs announces civil partnership bill

The Delegate Minister for European Affairs, Victor Negrescu, announced that the PSD would file a civil partnership bill with the Parliament next week. "I want to say that the bill is here, it's complete, it was discussed with the civil society partners, with the social actors, with the political organizations and will be filed next week," said Negrescu.

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Politics (2)

Crin Antonescu: "There's no need for Dragnea or the Cabinet to resign"

Crin Antonescu, former president of the National Liberal Party (PNL), said that there's no reason why the Cabinet should resign over last week's failed referendum. Antonescu added that PSD leader Liviu Dragnea has no reason to resign either and that he personally had voted in favor of the constitutional amendment.

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PM Dancila: Romania can play a European role

Prime Minister Viorica Dancila told the guests gathered at the Bucharest Forum 2018 on Tuesday that Romania can play a European role that is commensurate with the country's real potential in the EU. "We will invest our experience in significant priorities, to the benefit of citizens, as the primary beneficiaries of the European project," said Dancila.

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Social (1)

ANOFM: More than 31,000 job vacancies advertised

More than 31,000 jobs are vacant across the country, most of them in Bucharest, Prahova, Arad, Dolj, Cluj, Iasi, Sibiu and Timis, according to the National Workforce Agency (ANOFM). Employers are looking mainly for unskilled workers and retail workers.

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