News

Daily Newsletter - 27 February 2019

Summary

FIC (1)

Greed tax to be adjusted

The ALDE leader met on Tuesday with the Coalition for Romania's Development (CDR), whose members want the decree repealed. "The decree will not be abrogated, but some changes can be made based on further discussion and analysis. CDR representatives argued that this ordinance has a number of "critical" effects and revealed the lack of "real dialogue" before adopting it"said Mr. Tariceanu.

Greed tax to be adjusted

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Macroeconomic News (3)

Mandatory private pension funds beat inflation

The Romanian Association for Privately Managed Pensions (APAPR) announced that the average annual yield of all Pillar II funds was 8.03% in 2018, far above the inflation rate. The association pointed out that Decree 114 had a major negative impact on the Bucharest Stock Exchange (BVB).

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January budget surplus cratered

The consolidated general budget showed a RON 717 million surplus at the end of January, the equivalent of 0.07% of the estimated GDP, according to the Ministry of Finance. The surplus is three times lower compared to the corresponding month of 2018 and five times lower compared to the corresponding month of 2017.

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Industrial activity still low

The industry is contracting, an image clearly painted by the National Statistics Institute's (INS) reports, as well as the Industrial Barometer released by IRSOP and SNSPA. The EU economy, which is the main export market for Romanian companies, is also slowing down.

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Financial News (4)

BNR reports decrease in overdue loans

The National Bank of Romania (BNR) announced that the aggregated value of overdue loans (denominated in both RON and foreign currencies) was RON 7.63 billion in January, down 18% on an annual basis. RON-denominated overdue loans reached RON 4.78 billion, up 6.46% on a monthly basis.

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Chiritoiu: No evidence of banking collusion

The Competition Council found no evidence that the commercial banks had colluded in 2008 to increase the ROBOR rate, according to statements made by CC head Bogdan Chiritoiu before a Parliament commission.

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Overdue RON-denominated loans up 6.46%

The National Bank of Romania (BNR) announced that the aggregated value of RON-denominated overdue loans was RON 4.78 billion in January, up 6.46% from the previous month. The value of overdue loans denominated in foreign currencies dropped 7% to RON 2.8 billion.

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Government considers asset tax modification

The Cabinet is considering the proposal put forward by the National Committee for Macroprudential Oversight (CNSM) regarding the bank asset tax pegged to the ROBOR rate and will hold talks with the banking sector about the possibility of amending Decree 114.

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Investment News (2)

CDO Oradea to head Apuseni Road rehabilitation project

The Oradea Municipal Roads Company (CDO), a company controlled by a group of shareholders that includes SIF Banat Crisana, has teamed up with MBS Group, Aquacons and D'Agostino Angelo Antonio Construzioni Generali to rehabilitate the Apuseni Road, a project worth EUR 22 million.

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EUR 12 million to be invested in industrial park

Adriana and Stefan Cristea, two Cluj entrepreneurs, are planning to invest more than EUR 12 million in Arc Parc, a logistic park they opened in Dej. The first private industrial park in north-western Romania occupies 40 hectares of land and is host to 20 companies. Their combined investments from the past 10 years exceeded EUR 50 million, leading to the creation of more than 2,000 jobs.

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Legislative News (1)

Senate to allow Decree 114 to pass into law

The Senate's Budget and Finance Commission postponed on Tuesday the discussion of Decree 114 at the request of Minister of Finance Eugen Teodorovici. According to the Minister, MPs have filed a series of amendments that require careful analysis. This is the second consecutive delay for a decree that will pass into law automatically on March 1.

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Politics (1)

Ciolos and Barna take first step toward PNL alliance

Dan Barna and Dacian Ciolos, the leaders of the USR-PLUS alliance, took the first public step toward a possible alliance with the National Liberals (PNL). While Barna is open to the idea of cooperating with PNL to secure a majority in the next parliament, Ciolos extended the possible cooperation to the local elections.

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Social (1)

Professors demand more resources

Around 8,000 professors who are members of the Spiru Haret Education Unions Federation will start wearing tricolor armbands on Tuesday, as a way of protesting against the state of the education system.

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