Press Review - February 27, 2019

02.27.2019 By Oana Gavrila

Leu Loses Ground Vs Euro, Hits Low vs British Pound

The Romanian leu lost 0.05% against the euro Tuesday, standing at 4.7617 units to the euro at midday.

The leu hit record lows 11 times throughout January, sinking to an all-time low of  4.7648 units to the euro on January 25.

Against the British pound, the leu was at its lowest level since June 2016.  The leu stood at 5.5420 units per GBP Tuesday from a rate of 5.4744 units on Monday.

Three-Month Money Market Rate Grows to 3.29%

The three-month money market interest rate used to calculate interests for consumer loans in lei grew to 3.29% Tuesday, its highest level in four months, central bank data showed.

The three-month rate had stagnated at 3.28% for the second day in a row.

The six-month rate, an indicator used to calculate variable interest rates on mortgage loans, remained unchanged at 3.41% Tuesday for the third day running.

PM Summons Finance, Energy, Communication Ministers to Discuss Tax Decree

Romanian prime minister Viorica Dancila has summoned the ministers of finance, energy, and communications to discuss potential changes to tax decree 114, which affects the three sectors.

The decree introduced a tax on bank assets linked to money market interest rate levels, a tax on turnover in the energy sector and a new tax in the telecom sector.

Tariceanu Says Tax Decree Won't Be Repealed

Decree 114/2018 won't be repealed and the tax on bank assets could be lowered, said Senate chairman and head of the junior coalition party Calin Popescu Tariceanu. 

"I'm waiting for the conclusions of the Senate committee to see what amendments were submitted and what can be done. The decree will not be repealed,” he said.

The decree is currently under debate in the Senate and will be sent to the Chamber of Deputies as its 45-day term ends Wednesday, meaning it would be considered tacitly adopted.