News

Daily Newsletter - 19 February 2019

Summary

Macroeconomic News (3)

E-commerce pushed mail and delivery market above RON 4 billion

The turnover of the mail and delivery sector passed RON 4 billion in 2018, following a spectacular increase in the sales of products over the Internet, according to KeysFin. "The development of online shopping has brought a real breath of fresh air to the mail and delivery market. Seen by many experts as a declining industry becuse of technologica development (e-mail, online support services etc.), mail remains an essential service for the economy in 2019."

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Economy stumbles

The national currency stabilized last week around RON 4.74 per euro. The ROBOR rate is moving up to new highs. Both figures are balanced by the low liquidity on the interbank market. The Ministry of Finance is less generous than usual, because the 2019 budget has yet to be published in the Official Gazette. Minister Teodorovici pointed out that the situation could continue if President Klaus Iohannis refused to sign the budget into law.

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Private sector accounts for 80% of Romania's GDP

Lucian Anghel, chairman of the board of directors at the Bucharest Stock Exchange (BVB), stressed on Monday that 80% of Romania's annual GDP comes from the private sector, which makes its development essential to the well-being of the population. "With this added value we can build schools and high schools, pay decent salaries and high pensions. We can use it to fund any projects of national interest," said Lucian Anghel.

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Financial News (3)

Scope Ratings: BNR plays a crucial role in protecting the economy from the greed tax

The National Bank of Romania (BNR) plays a crucial role in protecting the economy from the uncertainties caused by the new and "unorthodox" greed tax imposed by the Cabinet, according to Scope Ratings. At the end of last year, the Cabinet set a new tax on the financial assets of banks that kicks in when the ROBOR rate passes 2%. EBRD and IFC sent official complaints to the Cabinet regarding the new tax.

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Banks urge Parliament to reject Decree 114

The banking community sent the Senate, the first Chamber of Parliament to discuss Decree 114, featuring inter alia the tax on the financial assets of banks, that although the impact of introducing the tax appears to limited to banks, the final cost will be paid by the society in general through the restriction of borrowing. The banks also warned that the new tax would lead to some banks not having enough funds to meet their capital requirements, as the tax rate is triple the return on assets recorded by banks over the past 10 years.

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CNSM put forward solutions for amending Decree 114

Representatives of the National Committee for Macroprudential Oversight (CNSM) presented yesterday a series of solutions for amending Decree 114, according to a press release issued by the National Bank of Romania (BNR). The final decision on whether to change the legislation and in which way rests with the Ministry of Finance.

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Investment News (2)

Real estate investment worth EUR 940 million

The volume of real estate transactions reported in 2018 was EUR 940 million, similar to the figure logged for 2017, but 30% higher compared to 2016, according to a report released today by real estate consultancy firm CBRE. For the fourth consecutive year, the office space sector attracted the largest number of transactions, accounting for 55% of the total agreements reached in 2018.

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Metrorex CEO says M5 work to be completed in September-October

Dumitru Sodolescu, CEO of Metrorex, said the work on Mainline 5 (M5) would be completed by September or October, provided that the lawsuit over the automation system was settled quickly. The Romancierilor, Constantin Brancusi and Valea Ialomitei stations are 99.4% ready.

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Legislative News (1)

Senate allows bill to pass into law

The Senate allowed an amendment to Law 7/2006 to pass into law unchallenged. The amendment modifies the regulations governing parliamentary employees in order to update their pensions.

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Politics (2)

PSD to announce list of EP candidates in mid-March

The list of Social Democratic Party (PSD) candidates for the European Parliament election will be finalized between March 15 and 20, according to party leader Liviu Dragnea.

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USR-PLUS begins collecting signatures

Representatives of the Save Romania Union (USR) and the Freedom, Unity and Solidarity Party (PLUS) started on Monday the campaign for collecting signatures ahead of the European Parliament election. Dan Barna, leader of USR, said the alliance has the best list of candidates any party has ever had in Romania and that people should no longer vote for the lesser evil.

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Social (1)

Projects to build social centers in Arad

The Arad City Hall wants to tap around EUR 2.5 million worth of EU funds in order to build two multipurpose centers for people living in marginalized urban areas. One of them will be located in Tarafului Street, while the second will be located in the Sezatorii-Padurii area.

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