Daily Newsletter - 21 March 2018


Macroeconomic News (3)

EUR 1 billion invested in Romanian real estate last year 

The national real estate market received approximately EUR 1 billion in investments last year. Bucharest accounted for the bulk of transactions (around EUR 400 million), according to the latest market report from Savills. The biggest transaction was the acquisition of the 68 Polona Street office building by Smartown Investments for EUR 15 million.


Romanian energy prices surged 

Romania has shown an unprecedented negative performance for its electricity and natural gas prices, which surged 40% and 48% in one year, respectively. The statement was made by Deputy Iulian Iancu, president of the Chamber's Industry and Services Commission.


Economies must find ways of lowering tax burden 

Economies such as Romania must research and identify ways of lowering the tax burden of companies or lose ground to the rising competition from emerging markets. These new markets are more dynamic when it comes to attracting foreign companies. A study showed that the Romanian tax burden is 28.5% of GDP, close to the international average.


Financial News (2)

Raiffeisen Bank wants to lend start-ups up to EUR 50,000 

Raiffeisen Bank is preparing to launch the Factory by Raiffeisen Bank contest for investment projects. The winners will be granted up to EUR 50,000 in financing per project. Entrepreneurs can enter this contest by April 22, 2018.


Provident boosts equity 

Provident Financial Romania has increased its equity by RON 30 million to a total of RON 46.61 million in response to the National Bank of Romania's (BNR) demand for more capital adjustments from the NBFIs. Provident is one of the biggest players of the NBFI sector, boasting a market share of 20% in 2016.


Investment News (2)

Preh to invest EUR 25 million in Ghimbav plant 

Preh Romania, a car part supplier of Porsche, Mercedes, Audi and BMW, is planning to invest EUR 25 million this year in Surface Mount Technology production lines for its Ghimbav, Brasov, plant. The company spent EUR 13.8 million last year on production lines and new assembly lines for Audi projects.


Fifth District Hall wants to build massive new neighborhood 

The Fifth District Hall signed on Tuesday, March 20, a technical assistance agreement with the World Bank, which will provide expertise for some of the biggest urban development projects undertaken in Romania since 1989. The District Hall wants to turn a 110-hectare property located in the Antiaeriana zone into a massive new residential neighborhood.


Legislative News (1)

Chamber passes judiciary amendments 

The Chamber of Deputies passed on Tuesday the amendments to the first judiciary bill package. The vote was held immediately after the Chamber passed the Special Commission's report. USR deputies staged a protest in the Chamber, wearing T-shirts bearing the "No Criminals" slogan.


Politics (1)

PSD and Cabinet pretend not to understand EU interest in corruption cases 

Prime Minister Viorica Dancila asked the Minister of Justice to check as quickly as possible if the European Commission had asked for information on the judiciary status of high level corruption cases between 2012 and 2018. Liviu Dragnea, president of the Social Democratic Party (PSD), said that such a demand for information would be "a brutal meddling in Romania's justice system".