Foreign Investors Council says the Government should pass investment stimulation measures in order to offset the negative effects of the VAT hike
Although the recent increase of the VAT will add another EUR 2 billion to the state budget, the business community is reeling from the tax hike. The US Chamber of Commerce (AmCham) advised the authorities to limit the application of the new VAT to the year 2010. The Foreign Investors Council stated the Government should pass investment stimulation measures in order to offset the negative effects of the VAT hike.
Article criticizes the reaction of the private business community to the VAT hike
" Ziarul Financiar '' features an article which criticizes the reaction of the private business community to the VAT hike. The author notes that Romanian capitalists, CEOs, the FIC, the AmCham, investors and expats started protesting against the VAT hike only after the Government's announcement, on June 28.
Alpha Bank launches two new refinancing loans to lure new customers
Alpha Bank launches two new refinancing loans, both for secured and non-secured loans. The maximum amount available is EUR 10,000 or the equivalent in RON, for up to seven years. The annual percentage rate is 17.31% for RON and 13.77% for EUR. (Romanian source)
The National Bank of Romania (BNR) fined four bank administrators and 13 managers in other credit institutions, after conducting 67 inspections in banks, Also, two executives received written warning from the BNR, and two other executives of a credit institution were lifted the approval to occupy the position. Also, NBR discovered 3.125 fake banknotes last year, 48.5% more than in 2008. (Romanian source)
The call-center service " Vocalis '' offered by BRD will extend its operations for legal persons and authorized natural persons. They will receive information on the bank's products and services, as well as customized information on the open accounts at BRD. (Romanian source)
ING has lowered interests for savings accounts by 1% and for savings accounts for children by 3% to 5%. The bank has also slashed interest for three-month deposits by 50 basis points to 6.75% per year, but leaved interests for one-month and nine-month deposits at 7%. (Romanian source)
CEZ to finish wind farm project in Fantanele by September
Czech energy group CEZ will finish the wind farm project in Fantanele by September, adding the 24 turbines that are lacking. At that time, the project's promised 139 turbines will be fully operational. The 600 EUR million investment changed Fantanele, an anonymous Dobrogea commune, into the hottest place when it comes to green power, and most of the villagers feel this. The power transformation station was built together with Transelectrica. (Romanian source)
Russian magnate Iakov Goldovsky comes to Bucharest for RAFO
RAFO owner came to Bucharest after the rejection of the decision to enter bankruptcy and the judicial reorganization procedure was closed. lakov Goldovsky called the company's technical staff and discussed the company's reinsertion strategy in the economic circuit. At this moment, there are discussions with local banks from abroad to obtain a finance line that RAFO would use to complete the modernization program. (Romanian source)
Oil perimeters won in Hague, snapped by Lukoil and Melrose Resources
Lukoil Overseas - Vanco International consortium and Melrose Resources - Petromar Resources joint venture won the right to explore and exploit oil perimeters in the Black Sea's Romanian sector. The sectors are on the surface Romania won in Hague on February 2009, as announced by the National Agency for Mineral resources. ExxonMobil, the second oil company in the world, Repsol, an European giant in the field, or local companies like Petrom, Rompetrol and Romgaz didn't win anything. The winners' list also consists in Chevron, which will license three terrestrial perimeters in the west of the country, in association with Expert Petroleum. 12 perimeters were also licensed to Audax Resources, Avere Energy, Clara Petroleum, Moesia Oil&Gas and Universal Premium. (Romanian source)
IMF approves fifth tranche of the loan with Romania
The money from the fifth tranche under the stand-by arrangement with the IMF of EUR 913 million will go into NBR reserves today, July 5, after the board of IMF approved Friday the fourth review of the stand-by agreement with Romania. IMF has left its economic contraction projection at 0.5% for this year. Due to VAT hike, IMF had to agree with the lifting of the inflation target from 3.5% to 7.9%. " Inflation will rise to 8-8.5% due to the austerity measures taken by the Government. The 3-3.5% target must be maintained because the public must understand that NBR remains committed to price stability '', said Lucian Croitoru, councilor to NBR governor, Mugur Isarescu. The senior economist of EFG Eurobank Gikas Hardouvelis, says Romania will emerge from recession as late as in the second half of 2011. (Romanian source)
Sanoma Hearst Romania, the publisher of Cosmopolitan, FHM, Story, National Geographic and Esquire, has bought the MagazinulDeCase.ro website, which publishes real estate ads. The acquisition was made through a new subsidiary of Sanoma Digital Romania and ass assisted by BDO Taxe and NNDKP for the buyer and Cunescu, Balaciu si Asociatii for the seller. (Romanian source)
Danone Romania plans to invest RON 20 million in 2010
Danone Romania plans to invest RON 20 million in 2010, a level similar to the one reported last year. Marketing, especially promotions, investments will be added to this sum. " We planned the same investment budget as in 2009. We will invest in increasing our production capacity, in improving our infrastructure, our equipment and in the modernization of the farms. We also have a marketing budget which focuses on promotions, so we can support the decreasing buying power of the population seen in this period. The company announced that it won't modify the distribution price of its products, despite the VAT increase to 24%. Danone has also planned to decrease its energy and heat consumption this year, as well as the water and the recyclable products consumption, by 1.5%. ''We are buying better equipment which uses less resources. Also, the packs which are delivered to the market are produced with a lower energy consumption", stated Danone representatives. (Romanian source)
The Permanent Bureau of the Chamber of Deputies decided to expand the deadline for issuing the report regarding the unified pensions system until September 1
The Permanent Bureau of the Chamber of Deputies decided to expand the deadline for issuing the report regarding the unified pensions system until September 1. Victor Paul Dobre, head of the Labor Commission, which must report out the bill, stated that the bill has three major issues, which would require a rethinking of the approach in order to avoid breaching the Constitution. (Romanian source)
The three individuals who had thrown eggs at Prime Minister Boc were fined
The three individuals who had thrown eggs at Prime Minister Boc on Saturday, July 3, were fined, according to Lieutenant Costin Barbu, spokesman of the Galati Gendarmes' Division. The three were detained by officers from the city's First Precinct. (Romanian source)
The Doctors' College throws out the MPs who did not vote in favor of the motion
The MPs who are also doctors and who did not support the motion of censure launched by the opposition parties, were excluded from the Doctors' College. Vasile Astarastoae, President of the College, stated that by voting against the motion, they approved the reduction of wages in the healthcare system. (Romanian source)
