Daily Newsletter
02 July 2018
Summary
Macroeconomic News (4) |
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VAT revenue collection report does not reflect reality
The gross VAT revenues collected by the state reached RON 29.2 billion in the first five months of this year, up 11.5% compared to the corresponding period of 2017. The net revenue information, the only data reported by the Ministry of Finance (MFP) for January-May, show only RON 22 billion in revenues, a 4% increase. Top |
IMF says party's over in Romania
While Romania's public debt is relatively low compared to those of other EU member states, the recent borrowing spree is speeding the country along an unsustainable path, according to a report from the International Monetary Fund. IMF and BNR data indicate that a public debt of 40-45% of the GDP would increase the risk of recession by a significant margin. Top |
Pension budget revenues up 18.4% last year
The elimination of the 5 gross salaries ceiling and the mandatory payments of contributions at the minimum salary level for employees who either work part-time or earn less than the minimum salary led to an 18.4% increase in the pension budget revenues last year. Top |
Experts say budget deficit could pass cap
While revenue collection is slightly below the budget forecasts, spending is far above the annual dynamics that the authorities had sought, according to Ionut Dumitru, president of the Fiscal Council. The statement came in the wake of the Ministry of Finance's announcement that the state budget was RON 8.14 billion in the red at the end of May. Top |
Financial News (4) |
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316 foreign banks apply for local license
The national banking system is becoming more dynamic. 856 institutions notified the National Bank of Romania (BNR) last year of their plans to offer direct services in Romania. 316 of these institutions are banks. Commercial banks controlled by local interests account for 29.4% of the national system, mainly thanks to a change in Banca Transilvania's shareholding structure. Top |
Prima Casa defaults up 38% in 2017
The Ministry of Finance (MFP) paid more than RON 10 million in 2017 from the state budget to the commercial banks on account of installment suspension by private individuals who had taken out mortgages under the Prima Casa program, a 38% increase from 2016. Top |
BNR Governor says country is financially stable
Romania's financial stability is solid and safe from severe systemic risks, but rising foreign imbalances could have serious effects, according to Mugur Isarescu, Governor of the National Bank of Romania (BNR). "The current account deficit is below 4%, below the warning threshold, but the upward trend is too strong to be ignored," added Isarescu. Top |
J.C. Flowers buys Piraeus Bank
Investment fund J.C. Flowers has completed the acquisition of Piraeus Bank, according to a press release. The National Bank of Romania (BNR) approved the transaction. Top |
Investment News (1) |
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Oltchim to spend almost EUR 4 million on environment
Petrochemical plant Oltchim Ramnicu Valcea will spend EUR 3.95 million on environment protection by 2022, according to the sustainability report published on the company's website. Last year, the company's long-term environment spending reached RON 32.03 million. Top |
Legislative News (1) |
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Ruling coalition wants to increase military retiring age
A bill sponsored by two MPs belonging to the Social Democratic Party (PSD) and the Alliance of Democrats and Liberals (ALDE) would increase the retiring age of military personnel to 65. According to the bill, soldiers "can be retained in active service after reaching the standard retiring age, until the age of 65, depending on the needs of the military institution, at the request or with the approval of the institution's leader". Top |
Politics (1) |
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Professional training, experience and relevance must be the appointment criteria in diplomacy, instead of blood ties, according to the Romania 100 Platform. The organization noted that the authorities continue to appoint consuls based on "patronage and nepotism". Top |
Social (2) |
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Romania loses five people per hour
The total fertility rate has dropped below the 2.1 threshold and is at an all time low of 1.428. The country loses five Romanians per hour, according to a bill offering early retirement to mothers in a bid to boost fertility. Top |
50% discount on subway rides for students
Metrorex announced that college students can apply for a 50% discount on subway fare, beginning with July 1. The discount is valid for 2-trip cards, 10-trip cards and weekly passes. The discount is based on Cabinet Decision 42 of January 31, 2017. Top |