News

Daily Newsletter - 28 February 2019

Summary

FIC (1)

Tariceanu says permanent dialog with business community very important for ALDE

We now have a better understanding of the issues raised by the business community, the National Bank of Romania (BNR) and the Romanian Banking Association (ARB), according to ALDE leader Calin Popescu-Tariceanu. "The Coalition for Romania's Development includes Romanian and foreign companies from various fields, practically from every sector of the economy, and our talks focused almost exclusively on Decree 114," added Tariceanu.

Tariceanu brags on Facebook about "useful" dialog

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Macroeconomic News (3)

EC: Romania's budget deficit is 3.3% of GDP

Romania had a state budget deficit of 3.3% of GDP, based on the ESA calculation method, according to the country report published by the European Commission. The method does not take into account one-off revenues.

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Cabinet allocates EUR 50 million for tomato farmers

Prime Minister Viorica Dancila announced on Wednesday that the Cabinet would discuss two bills aimed at supporting Romanian vegetable farmers. "We have two bills to support agricultural producers on the agenda of today's meeting, encouraging the production of Romanian vegetables. For the third consecutive year, we support farmers to grow tomatoes in protected areas, and this year we will allocate EUR 50 million to finance this program, which is enjoying increasing interest from farmers," said the PM.

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UDMR leader says Finance Minister wrong

Decree 114 is insane, according to statements made by UDMR leader Kelemen Hunor on RFI. The statement came as a reaction to Finance Minister Teodorovici calling Decree 114 the most courageous bill since the Revolution of 1989. Hunor also warned that the Senate could allow the decree to pass into law unchallenged.

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Financial News (4)

EC - Asset tax would hurt Romanian banking system

The European Commission published today the 2019 country report on Romania, containing in-depth analyses of the economy and policies adopted by the authorities. In this report, the European Union experts make numerous clear references to the measures contained in Decree 114/2018, which strongly weaken Pillar II and have negative effects on the future pensions of Romanians, the capital market, long-term investments and Romania's economy as a whole.

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Net revenues from interest up

Net interest revenues, the main profit source for banks, were on the rise in 2018, as the borrowing market recovered and the banks decided to speed up the upward movement of interest rates in order to keep up with the inter-bank market, while also keeping deposit rates down. Banks reported over RON 16.7 billion worth of interest revenues in 2018, up 25.7% from 2017.

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Banca Transilvania posts operating revenues increase

The Banca Transilvania group logged EUR 849 million worth of operating revenues for 2018, up 35.28% year-on-year. The main growth drive was interest revenues. The group's assets surged to EUR 16.7 billion, while earnings climbed 1.18% to EUR 270 million.

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Government reconsiders Prima Casa change

The terms on which Prima Casa loans are granted will not change, according to Finance Minister Eugen Teodorovici. The Ministry of Finance seems to have abandoned the idea of turning Prima Casa into a social program, with loans granted based on the applicants' income.

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Investment News (2)

Romania rebuilds old fortresses

Romania is recovering its history with the help of European Union funds. Millions were spent on renovations for historical monuments and now the old fortresses attract tourists from all over the world.

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E-Distributie Muntenia invested RON 24.35 million in two underground lines in Bucharest

E-Distributie Muntenia has invested RON 24.35 million in two high tension underground power lines in Bucharest, in order to increase the capacity of its network, improve the quality of its electricity distribution and boost the security of electricity supply to more than 100,000 clients in the city's central and northern neighborhoods.

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Legislative News (2)

Chamber passes bill disbanding new department

The Chamber of Deputies passed a bill disbanding the newly created department tasked with investigating magistrates. The bill was drafted by the Save Romania Union (USR).

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Cabinet prepares new tax amnesty

The Cabinet is working on a new tax amnesty decree, according to Finance Minister Teodorovici. "We are working on a series of measures regarding private sector financing. I'm talking about a tax amnesty, removing negative capital from the economy and improving the financing of the private sector by the banks," said Teodorovici.

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Politics (2)

European Parliament election to cost RON 272 million

The Cabinet allocated on Wednesday a RON 272 million budget for the European Parliament election scheduled for May 26. The amount is 24 million higher than the local elections budget from 2016.

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Barna: Kovesi vote is slap in the face for PSD-ALDE coalition

Laura Kovesi's victory in the two voting rounds held by the European Parliament's commissions is a slap in the face for the PSD-ALDE coalition, according to USR leader Dan Barna. Kovesi is running for the position of chief prosecutor of the EU.

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