News

Daily Newsletter - 4 June 2019

Summary

FIC (1)

Romania - Europe's Colony. A story of Never-ending Propaganda

"Romania - Europe's Colony. A story of Never-ending Propaganda" is the first analysis of the DISINFORMATION MANUAL. ROMANIA, 2019. (This article is part of the FIC campaign - Foreign Investments in Romania, FiR) 

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Macroeconomic News (3)

Budget deficit booms

The budget deficit reached 1.1% of the GDP in the first four months of this year, the result of public policies focused on increasing mandatory expenses (payroll and social assistance). The situation was made worse by the highly unrealistic estimates of revenues used to make the budget.

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MFP borrowed RON 1.3 billion

The Ministry of Finance (MFP) borrowed RON 1.31 billion from the commercial banks on Monday, through an issue of benchmark bonds with a residual maturity of 116 months and an average yield of 4.76% per year, according to the National Bank of Romania (BNR).

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Finance Minister says tax exemption could be expanded

"I did not have a reaction to the IT topic. It was a topic discussed by people who do not understand it. [The income tax exemption] was a good measure and I think the figures are more than convincing. The IT industry accounts for a significant part of the GDP," said Teodorovici. The minister added he wants to extend the incentive to other industries as well.

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Financial News (3)

BT shares heading for correction

The shares of Banca Transilvania, the biggest lender in the country, will undergo an 8% correction on Tuesday, the equivalent of the dividend paid from last year's earnings.

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BNR international reserves down

The National Bank of Romania (BNR) announced that the country's foreign reserves amounted to EUR 36.7 billion at the end of May, down 2.54% from April. The foreign currency reserves reached EUR 32.8 billion, while the gold reserve stayed at 103.7 tons.

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BNR takes aim at IT&C

As international and Romanian banking have been changing over the past few years, the National Bank of Romania (BNR) decided that the Internet, digital platforms, internet banking and all other related activities are a source of risks. As such, they have to be monitored and therefore BNR has decided to amend Regulation 5/2013 on prudential requirements for credit institutions. The change includes the IT&C means used by banks among the most important risks that the credit institution should forecast/provision for.

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Investment News (2)

Enel to invest more than RON 53 million in smart meter installations

E-Distributie Muntenia, E-Distributie Dobrogea and E-Distributie Banat will install over 17,000 smart meters this year for clients in their areas of activity under a series of investment projects worth over RON 53 million. By the end of 2019, over 671,000 E-Distribution clients will benefit from smart metering systems.

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Real estate investment in Romania among region's lowest

The volume of investment reported for the first quarter of this year was EUR 117.5 million, close to Hungary's EUR 123 million, but far below the Czech, Austrian and Polish markets, which reported investment above EUR 700 million, according to CBRE.

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Legislative News (2)

Cabinet decree sparks new row

The Cabinet has issued a decree making the presidents of county councils directly elected by citizens, according to Deputy Prime Minister Daniel Suciu.

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PSD to draft constitutional amendment

Marcel Ciolacu, the President of the Chamber of Deputies, stated at the beginning of the Permanent Bureau meeting that the PSD would draft a constitutional amendment to implement the outcome of the referendum on justice called by President Iohannis on May 26. The initiative announced by the new Chamber president overlaps with that announced by President Klaus Iohannis, who said a week ago that a specialized commission would start working, with the help of the Presidential Administration, on a similar project, which would be made available to "decision-makers".

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Politics (2)

Leading PNL figure resigns

Cristian Busoi resigned yesterday as head of the Bucharest organization of the National Liberal Party (PNL), a move he described as "the wisest" choice. Busoi and his leadership team took responsibility for the party organization's poor performance in the European Parliament election.

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President accused PSD, ALDE of obstructing justice

In the wake of the Senate's decision to prevent the National Anti-corruption Directorate (DNA) from investigating Calin Popescu-Tariceanu, President Klaus Iohannis accused the PSD and ALDE of continuing to obstruct justice and proving themselves a discredit to their country.

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