News

Daily Newsletter - 21 February 2019

Summary

Macroeconomic News (2)

Water management budget up 150%

The state budget features approximately RON 500 million for water management investments, up 150% from the previous year. The funds will be used to complete more than 130 projects, according to Minister of Water and Forests Ioan Denes.

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Insolvencies to surge in 2019 and 2020

The number of insolvencies will go up 6% this year, compared to 2018, and the period 2019-2020 is likely to see a 20% surge in insolvencies caused by both domestic and foreign events, according to statements made by Eugen Anicescu, country manager Coface Romania, at a conference. 8,177 companies filed for insolvency last year, mostly from the construction, retail and wholesale commerce sectors.

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Financial News (3)

Banks posted lowest NPL rate in five years

The NPL rate reported by the national banking system dropped to 4.95% at the end of 2018, the lowest figure in five years, according to the National Bank of Romania (BNR). By comparison, the NPL rate was above 6% at the beginning of 2018.

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Banks targeted by new fiscal inspections

The National Fiscal Administration Agency (ANAF) is conducting fiscal inspections at three banks. Two inspections began last year and focus on the profit tax and the income tax for local revenues obtained by nonresident companies between 2011 and 2017.

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Gabriela Folcut, CEO of ARB: "The banking sector is going through what could be its most difficult period"

The leaders of the Romanian Banking Association (ARB) and other representatives of finance and banking institutions met yesterday with Senate president Calin Popescu-Tariceanu to discuss Decree 114. "The banking sector is going through what could be its most difficult period," said Gabriela Folcut, CEO of ARB. The BNR evaluation of the asset tax's impact showed that some banks may not be able to meet the capital requirements.

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Investment News (1)

Electrica plans investment projects worth RON 739 million

The Electrica group has investment projects worth RON 739 million for this year, with most of the money going to projects handled by the distribution branches, according to a press release sent to the Bucharest Stock Exchange (BVB).

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Legislative News (1)

DIICOT: Judiciary changes are unconstitutional

The Directorate for Investigating Organized Crime and Terrorism (DIICOT) announced on Wednesday that it supports the points of views put forward by the Attorney General and the Prosecutor Department of the CSM. According to DIICOT, the recent judiciary changes run against the institutional architecture stipulated by the Constitution.

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Politics (2)

Presidential office says draft budget is very bad

Spokeswoman Madalina Dobrovolschi announced on Wednesday that President Klaus Iohannis "would make a decision soon" about the draft state budget for 2019. The bill was sent to the Cotroceni Palace five days after its passing by the Parliament.

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PSD blasts President over budget

The Social Democratic Party (PSD) blasted President Iohannis on the social networks, saying the President is only interested in a PNL budget and that his sole concern is to score points for the election campaign.

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Social (2)

Almost half of Romanian employees felt sexually harassed at work

Almost half (44%) of Romanian employees felt sexually harassed at work at least once in their careers and no less than 86% of them are women, according to a survey conducted by an online recruiting platform. 80% never reported the incidents to colleagues or bosses, preferring to suffer in silence or resign.

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63% of Romanians expect to work after retirement

About 63% of Romanians expect to continue working after retirement, the largest figure in Europe, according to a survey by Dutch financial group ING. Approximately 54% of Europeans expect to remain active on the labor market after retirement age, according to the 14,695 respondents from 15 countries, of which 13 in Europe.

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