News

Daily Newsletter - 4 February 2019

Summary

FIC (1)

CDR, economy professors urge repeal of Decree 114

The businesses CDR represents, Romanian and foreigner alike, are amazed with the antagonistic way the measures of the OuG 114/2018 were presented and the discourse that accompanied them. This is not the first time the business environment is not consulted and not even warned of measures with significant consequences. Companies who are or want to become active in Romania require a stable, predictable and clear legislative framework to take (long-term) business decisions. Continued frequent, severe and unpredictable Government interventions into the legal frameworks for their businesses frustrates business activity and has a strong potential to deter investments. What particularly struck the business community and all members of the CDR, beyond the lack of consultation, are the massive changes OuG 114 brings to multiple sectors that support the modernization of the economy and which are very important for the quality of life: the energy sector, the telecommunications sector, the financial and banking sector and the capital market. Unjustifiable shocks in these areas, with measures adopted overnight could push them into a deep crisis.


CDR letter to PM Dancila

Biggest companies foresee disaster!

Explosive letter

German investors slam Cabinet

Decree 114 - Losses exceed benefits


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Macroeconomic News (2)

Cabinet to approve budget on Tuesday

Finance Minister Eugen Teodorovici said the draft budget would be approved on Tuesday and sent to Parliament on the same day. The Minister called the budget "revolutionary".

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Electricity imports go on

Electricity sold on the national spot market on Sunday was the cheapest in the region, but imports have yet to stop, according to OPCOM and Transelectrica data. The average delivery price for Sunday was RON 203 per MWh, with a maximum of RON 276 per MWh between 18:00 and 19:00. These prices are over 50% lower compared to two weeks ago.

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Financial News (3)

BNR data

Local banks had high profit margins last year - the spread between interest on new loans and new deposits - for retail customers: 6-7 percentage points. The financial asset tax could determine some lenders to maintain these margins or even increase them to cover the extra costs, as some bankers have argued.

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MFP to borrow from citizens

The Ministry of Finance (MFP) will issue government bonds maturing in 2, 3 and 5 years, bearing annual interest rates of 4%, 4.5% and 5%, respectively. The announcement came shortly after the MFP announced it would stop borrowing from the banks. The Ministry had wanted to borrow RON 3.7 billion in January, but managed to attract only RON 1.4 billion.

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BNR reserves down

The foreign exchange reserves held by the National Bank of Romania (BNR) dropped in January, according to the figures published by the BNR on Friday. On January 31, 2019, the international reserves amounted to EUR 31.9 billion, down from EUR 33 billion, on December 31, 2018.

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Investment News (1)

ASSMB to spend EUR 33.5 million on hospital equipment

The Bucharest Administration of Hospitals and Medical Services (ASSMB) has launched a tender for the purchase of medical equipment worth up to RON 159.39 million (EUR 33.5 million) for the "Dr. Victor Gomoiu" Hospital, according to an announcement published on the SICAP procurement platform.

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Legislative News (1)

New legislative blow?

The Government is preparing a new Emergency Ordinance, which brings changes to some normative acts in the area of consumer protection, which would come with drastic sanctions, according to Deloitte Romania consultants. As the bill currently stands, the sanctions applied on the new normative acts range from 2% to 4% of turnover and up to 5% for service providers.

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Politics (2)

PSD attacks president again

The PSD claims that 97 percent of Romanians do not know what President Klaus Iohannis did in his five-year term, while 3 percent say the head of state has "made statements".

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USR and PLUS to form 2020 Alliance

USR and PLUS decided on Saturday, after talks that lasted all day, to form the 2020 Alliance. The two parties will support common candidates in this year's European Parliament and presidential elections, as well as in next year's parliamentary election.

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Social (1)

City Hall tells car owners to apply for vouchers

The Bucharest City Hall reminds the used car owners, accepted in the "Program for stimulating the elimination of high-pollution vehicles in Bucharest with eco-vouchers", that the last day for submitting applications is February 21, 2019.

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