Daily Newsletter - 31 July 2017


Macroeconomic News (4)

Deloitte simulation of new tax model 

The Ministry of Finance announced on Thursday that the payment model used for social contributions would change on January 1, 2018. The CAS and CASS contributions will be transferred from the employer to the employee and reduced from 39.25% to 35%.


Romania following Greek example 

Investments are at a ten-year low, payroll and social security spending is rising, budget revenues aren't even close to last year's and the absorption rate for EU funds is very low. Does it look like Greece in 2007-2008? Analysts say yes. The first half of this year brought somber news for the state budget.


Coal output up 13% in five months 

Romania's net coal production amounted to 1.86 million tons of oil equivalent in the first five months of this year, up 12.9% from the corresponding period of 2016, according to data centralized by the National Statistics Institute (INS). Coal imports reached 154,600 toe, down 22.9% year-on-year.


Managers expect activity growth in all sectors 

The highest expected increases focus on the tobacco (43%) and beverages (41%) sector, followed by retail, according to the managers polled by the National Statistics Institute (INS). The number of employees will grow moderately in retail and services.


Financial News (5)

Tarom estimates RON 41.2 million loss 

National air carrier Tarom expects a loss of RON 41.2 million for this year, down 12.3% year-on-year. The company's aggregated revenues will reach RON 1.32 billion, according to the draft budget.


Engie Romania's earnings up in H1 

French group Engie, the majority shareholder of one of the two companies that dominate Romania's natural gas distribution and supply market, reported an increase in semestrial earnings. The cold winter helped boost the company's revenues.


NPL rate down 

The NPL rate reached 9.04% in May, down 0.22 percentage points from the previous month, according to the National Bank of Romania (BNR). The annualized trend is a 3.36 pp contraction. The NPL rate is now less than half of the 20.71% reported in mid-2014.


ARO-Palace shares to be listed on AeRO tomorrow 

The shares of ARO-Palace will be listed tomorrow on BVB's AeRO market, according to a press release. ARO-Palace owns the five-star Aro Palace hotel, located in Brasov.


Seven MTPL sellers reported increase in calims 

A report released by the Financial Supervisory Authority (ASF) showed that seven of the eight insurers that sell MTPL policies in Romania reported an increase in the number of claims. The highest rates of settled claims came from Generali (87.76%) and Euroins (87.56%).


Investment News (1)

State to retain control of Cupru Min 

The Minister of Economy, Mihai Fifor, stated on Sunday that the state would not sell Cupru Min, the state-owned company that exploits 60% of Romania's copper reserves. The Minister added that he does not believe in privatization.


Legislative News (1)

Minister of Economy: The mines bill, the mineral waters bill and royalty bill will be up for public debate by September 1 

The Minister Economy, Mihai Fifor, stated that the mines bill, the mineral waters bill and royalty bill would be up for public debate by September 1. Asked whether the bill would help Rosia Montana, Fifor said the Ministry is waiting for a resolution of the legal battle between the state and the investor.