News

Daily Newsletter - 31 October 2017

Summary

FIC (3)

While economy grows, investors' confidence decreases 

The Foreign Investors Council (FIC) publishes twice a year the results of the Business sentiment index survey conducted among its members. Romania has an opportunity to build on the current economic growth and become one of the top 10 economies in the European Union in the next 20 years, but it has to do so wisely ensuring the sustainability of long-term investments and reforms. Constantly changing fiscal policy with measures being announced and then dropped has had a powerful negative effect on the trust of investors. Equally, perceived or real dangers for the rule of law in Romania, translate into less trust on behalf of investors. Last but not least some of the public discourse that tries to play foreign against local, large against small investors has lowered trust and increased uncertainty. Equally worrying are the increased number of instances when officials are using misleading or false information in order to slander certain industries or economic sectors.

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#FIS2017 | Franz Weiler (FIC), confirmed speaker at BR’s Foreign Investors Summit (Source: business-review.eu)

Franz Weiler, president of the Foreign Investors Council, is one of the key speakers of the fourth Foreign Investors Summit (FIS), the 3-day exclusive business event organized by Business Review between October 31 – November 2 in Bucharest. Weiler will speak in the first day of the event in the Country Strategy panel. The FIC is one of the largest business associations in Romania whose members have created around 200,000 jobs in the country.

How can Romania develop its potential as destination for foreign investments? Find out at Foreign Investment Summit (Source: prwave.ro) 

How can Romania develop its potential as destination for foreign investments? Find out at Foreign Investment Summit (Source: romaniapozitiva.ro)

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Meeting with Eric Stab, ENGIE Romania 

Who are you? I am the PDG of Engie Romania and I also coordinate the activity of Engie group in the Eastern Europe (Poland, Slovakia, the Czech Republic), area where the group achieves an approximately 1.3bn euros turnover and has about 5000 employees. Moreover, I am the vice president of the Foreign Investors Council at present, after having had the honor to preside over it during two mandates, and member in the Executive Committee of the Coalition for Romania's Development.

Macroeconomic News (4)

Romania, first in Europe in wine production growth rate 

Romania's wine production is estimated at 5.3 million hectoliters this year, up 64% compared to one year before and a maximum of the past five years, the data of the Wine and Vineyard Organization (OIV) show. This is the highest growth in production in Europe.

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CNIPMMR: The new work insurance contribution, of 2.25%, will increase taxation 

The National Council for Romanian Small and Medium-sized Enterprises (CNIPMMR) does not agree with the new work insurance contribution of 2.25%, as it will increase taxation, the general secretary of the Council, Liviu Rogojinaru, stated Monday within a press conference.

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ANALYSTS: Fiscal amendments - good and bad at the same time 

Reducing the income tax from 16% to 10% for wage earnings, for some pensions, rents, interests, agricultural activities, introducing a "work insurance contribution" of 2.25% for employers, increasing the level of the gross monthly wage basing on which personal deduction is granted, reducing the overall share of compulsory social contributions from 39.25% to 37.25%, lowering the number of social contributions from 6 to 3, are among the fiscal measures announced by the Government. Also, the national minimum gross wage will increase from RON 1450 to 1900 as of 1 January 2018.

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AAFBR: Imposing the turnover tax facilitates fiscal optimization. The state can lose at least RON 334m 

Only 3% of the companies with revenues up to one million euros would pay more to the state, by virtue of the application of the unique 1% share of the turnover, according to an impact study carried out by Iancu Guda, the head of the Romanian Financial-Banking Analysts' Association (AAFBR). "The unique 1% share imposed on turnover, for the companies with returns below one million euros, can bring an approximately RON 631m reduction of the taxes paid by these companies", Iancu Guda writes in his study.

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Financial News (3)

Consumer Protection considers the commissions for cash withdrawals from the credit card illegal. It has fined CEC Bank 

The National Consumer Protection Authority has fined CEC Bank for having levied a cash withdrawal commission on clients for credit cards, which would breach the credit law. The state bank should give back to clients up to RON 5m. The most banks levy commissions for such transactions, even a couple of percents from the withdrawn sums, taxes being much higher than in the case of debit cards.

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NBR calms the exchange rate and Robor through a new injection of liquidity worth RON 4.12bn 

For the fourth time in October, the National Bank of Romania (NBR) injected RON 4.124bn in the market, through a new repo operation. Against the background of a slight liquidity deficit generated by the beginning of the reserve requirements period and of the quarterly payments to the budget, NBR's repo operation was waited by the banking market.

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Shares in Banca Transilvania have the most abrupt slump in BET index Monday morning. Investors are waiting for the announcement about the negotiations for buying Bancpost 

Shares in Banca Transilvania (TLV), the most liquid on the Romanian stock exchange, went down 1.13% Monday morning, at 11.30, the most abrupt slump in the 13 companies composing the reference BET index. For comparison, the highest growth in the price of a share in BET was recorded in Transelectrica, of 1.2%.

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Investment News (1)

Oradea City Hall invests 7.7m euros in an overground passage way on the beltway 

Oradea City Hall plans to invest approximately 7.7m euros in laying out an uneven passage way across the junction between the beltway of Oradea and Universitatii street. The works are to be funded from the local budget or other funds, if a project is won, according to a communication of Oradea City hall.

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Legislative News (1)

Stopped impetus: The draft law eliminating bank commissions for the majority of Romanians, sent back to commissions for redefining "vulnerable consumers" 

The plenary of the Chamber of Deputies has sent back to the report commissions the draft law on comparability of payment accounts, which introduces a series of limitations for banks regarding the commissions for accounts that can be levied on clients, notably on those defined as vulnerable. The budget-finance and industries commissions have introduced an amendment which practically eliminates any commission for the people earning below two minimum wages per month.

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Politics (2)

Orban: We submit the simple motion against the finance minister Tuesday; against the energy minister - next week 

The liberals will submit Tuesday to the Senate a simple motion against the finance minister, Ionut Misa, and next week to the Chamber of Deputies against the energy minister, Toma Petcu, the PNL leader, Ludovic Orban has announced. "Tomorrow's submission of the motion against the finance minister, Ionut Misa, has been approved in the Executive Office. The motion will be submitted by PNL's parliamentary group from the Senate", Orban has said in the Parliament. He has specified that PNL will submit a simple motion against the energy minister as a result of the "unimaginable disaster" in this field.

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Dragomir: Coldea, Kovesi, Maior, Dincu, Andronic have been in Oprea's dining room. Operative measures for keeping their offices have been taken 

The former SRI colonel Daniel Dragomir contended Monday evening, at the hearing from the investigation commission on 2009's presidential elections, that in the night of the second ballot, Florian Coldea, Codruta Kovesi, George Maior, Vasile Dincu, Dan Andronic had been present in Gabriel Oprea's dining room and the purpose of their meeting had been of constituting a "crisis cell" for hindering an initiative on recounting the votes from diaspora.

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