Press Review - April 14, 2016

04.14.2016 By Gabriela Stan

Romanian Parliament Adopts Law On Debt Discharge

The Romanian Chamber of Deputies adopted the law on debt discharge on Wednesday, with 207 pros, one con and one abstention.

Deputies decided that the government-backed mortgage lending First Home program will not remain subject to the provisions of the law, while the maximum ceiling which will be considered when enforcing the law will increase from EUR150,000 to EUR250,000.

The law will also be applicable to properties subject to foreclosure procedures.

The law on debt discharge will be sent to President Klaus Iohannis for promulgation and the only way to be appealed would be at the Constitutional Court.

The law allows retail mortgage borrowers to return real estate collateral to banks in exchange for writing off their loans. (Puterea)

First Home Program Funds For 2016 To Be Reassigned Between Banks

Romania's national guarantee fund for small and medium sized businesses (FNGCIMM) will soon reassign several sums allocated to banks for the government-backed mortgage lending First Home program, jointly with the Finance Ministry.

Romania’s largest lender BCR has recently announced it finished the funds for the 2016 First Home program. 

“According to the law, FNGCIMM is authorized to evaluate, at least every three months, the use of the funds by banks and reassign the funds to other banks based on the degree of use of the assigned ceilings. (...) The activity of granting guarantees within the First Home program has faced a sharp increase lately, so that one of the participant lenders has recently announced it finished the funds assigned for 2016, asking for additional funds,” FNGCIMM said in a statement. (Romania Libera)

EY: Romanian M&A Market Up 21.7% To $3.65B In 2015

In 2015, the Romanian mergers and acquisitions market rose 21.7% on the year, to $3.65 billion, being the fourth important market in the region, according to EY CSE M&A Barometer 2015.

The largest transaction in Romania last year was the acquisition by Italian group UniCredit of the 45% stake owned by Ion Tiriac in UniCredit Tiriac Bank, through two Cyprus-based companies, for approximately $771 million (EUR682 million).

The transaction ranks fifth in top 10 transactions in the region last year.

The study includes 11 markets in the region: Bulgaria, Croatia, the Czech Republic, Greece, Hungary, Poland, Romania, Serbia, Slovakia, Slovenia and Turkey.

The total number of transactions was 1,281, which decreased by 1.8% in 2015 compared with 2014. The total 2015 estimated transaction value in the CSE market was US$43.1 billion, up by 12.0% from the previous year. (Adevarul)

Klaus Iohannis: National Security Laws Could Be Adopted In June

Romanian President Klaus Iohannis stated on Wednesday that the first pack of national security laws could be adopted in June.

"The Prime Minister gave assurance that these three laws (e.n. — security against terrorism, cyber security and pre-pay cards) will get through all government and public consultations procedures, so that they would be sent to the Parliament at the end of May. (...) The government will send the laws at the end of May, so that they can be passed by both chambers of the parliament in June," Iohannis stated. (Puterea)

MEP Cristian Preda Asks PNL To Withdraw Marian Munteanu From Bucharest Mayor Race

MEP Cristian Preda asked the National Liberal Party (PNL) to withdraw the candidacy of Marian Munteanu for Bucharest mayor, saying that it would be better for PNL not to have its own candidate, as “they have been overwhelmed by ridicule” '.

''I invite PNL to withdraw the candidacy of Marian Munteanu, who has nothing in common with the center-right wing profile (…) or the doctrine of EPP, the European family that PNL joined. The candidacy of Munteanu is an error as big as the proposal of King Michael of Romania for president in 1992. After the series including Busoi, Orban, and Munteanu, PNL would rather have no candidate of its own, as they have been overwhelmed by ridicule,” Preda said.

 The Liberal Party’s unification committee decided to propose Marian Munteanu as candidate for Bucharest mayor and the proposition was validated by the National Political Office on Tuesday.

Munteanu is a former leader of the anti-government protests that took place in 1990 in Romania and were ended violently by the intervention of the miners (the Mineriad). (Romania Libera)