Daily Newsletter - 4 March 2019


FIC (1)

Greed tax to be reduced

The ALDE leader met on Tuesday with the Coalition for Romania's Development (CDR), whose members want the decree repealed. The government seems ready to compromise on the issue. On Tuesday evening, Prime Minister Dancila called a meeting with the ministers of finance, energy and communications to tell them the decree must be amended. After ALDE and UDMR called for a downward adjustment of new taxes, Minister Teodorovici suddenly became very flexible.


Macroeconomic News (3)

Meat trade showed EUR 461 million deficit

Romania imported meat and meat products worth EUR 848.6 million in the first 11 months of 2018, while exports stood at EUR 387.2 million, according to data centralized by the National Statistics Institute (INS). Exports rose 1.7%, while imports surged 7.1%, year-on-year.


MFP prepares RON 2.2 billion loan

The Ministry of Finance (MFP) has approved the prospectuses for issuing RON 2.2 billion worth of discount T-bills and benchmark state bonds in order to finance the state budget deficit and public debt. The first auction will be held on Monday, involving RON 400 million worth of benchmark bonds maturing in 2021.


S&P confirms Romania's rating at BBB-/A-3

Standard & Poor's (S&P) confirmed Romania's long-term and short-term debt ratings (foreign and national currency) at BBB-/A-3. The outlook will be announced in two weeks, according to a press release. The government has appealed S&P's rating outlook decision and the request was accepted.


Financial News (3)

ROBOR averages track yields

The inter-bank interest rates have moved up under the pressure caused by the Ministry of Finance's need for money, according to the state bond issue schedule and the analysts' estimates. The average ROBOR rates are tracking closely the yields that the Ministry is willing to accept for borrowing money from the commercial banks.


OTP Bank posts RON 55.3 million in 2018 earnings

OTP Bank Romania reported RON 55.3 million worth of after-tax earnings, according to the consolidated and adjusted financial report released in Budapest. The bank's earnings increased by 25%, compared to 2017, thanks to a surge in operating revenues. The value of good loans increased by 14%, supported by solid growth in mortgages and SME loans.


Prima Casa program begins

The National Loan Guarantee Fund for SMEs (FNGCIMM) announced the launching of the Prima Casa 2019 program, following the Ministry of Finance's (MFP) approval of the distribution agreement for RON 1.98 billion of the total RON 2 billion budget. The program will be handled by 15 financing banks: BRD-GSG, BCR, Banca Transilvania, CEC Bank, ING Bank, Raiffeisen Bank, OTP Bank, Banca Românească, Unicredit Bank, Garanti Bank, First Bank, Marfin Bank, Credit Agricole, Leumi Bank and Intesa Sanpaolo Bank.


Investment News (2)

EUR 30 million investment in Galati beltway

The financing contract for the biggest road infrastructure project undertaken by the city of Galati in the last 30 years was signed on Thursday. The procedure for building a beltway for the city was launched last year, when the County Council applied for EUR 28 million in European Union funds.


Spas to receive financing for infrastructure projects

The Minister of Tourism, Bogdan Trif, met with the mayors of spas across the country on Saturday. The Minister told the mayors that the spas would receive financing for tourism infrastructure development projects equal to that allocated to national interest resorts. "Spa tourism is a priority for the government, which is why it's very important to let you know about the measures designed to help spas," said Minister Trif.


Legislative News (1)

Five changes to Decree 7 that Minister Toader will accept

Prosecutors representing the Superior Council of Magistrates (CSM) met with the Minister of Justice. The Minister presented five changes that he is willing to make to Decree 7. Among these changes are the elimination of disciplinary penalties for magistrates that enjoy good reputations, as well as the decision to allow judges to head parquets. None of the changes touches on the department tasked with investigating magistrates.


Politics (2)

Former PM Ciolos mulls presidential run

Former prime minister Dacian Ciolos said he is mulling a run in the presidential election to be held later this year. Ciolos added that the PLUS-URS alliance will filed joint tickets in the European Parliament elections, though the arrangement applies in principle to the presidential and parliament elections.


Liviu Dragnea: I'm a staunch pro-European

Liviu Dragnea, President of the Social Democratic Party (PSD), stated in Resita that he is a staunch pro-European and very dedicated to an even deeper partnership with the United States of America. However, Dragnea also said Romanian politicians should not forget to be patriots. Dragnea expects the PSD's future MEPs to defend the country's interests.