Press Review - January 8, 2016

01.08.2016 By Gabriela Stan

Central Bank Lowers Minimum Reserve Requirements, Leaves Key Rate Unchanged

The Romanian central bank Thursday kept its main monetary policy lending rate unchanged at 1.75% a year but lowered minimum reserve requirement ratios for foreign currency deposits to 12% from 14%.

The central bank left the minimum required reserve ratio unchanged at 8% for deposits in Romanian lei.

Central bank governor Mugur Isarescu said in November, after the bank's previous board meeting on monetary policy, that the central bank would maintain a cautious approach with respect to monetary easing.

Energy Holding CE Hunedoara Goes Insolvent, GMC Craiova Appointed Judicial Administrator

Hunedoara Court admitted the insolvency request filed by state-run energy holding Complexul Energetic Hunedoara and appointed GMC SPRL Craiova as judicial administrator.

On December 28, CE Hunedoara Board of Directors decided to file for voluntary insolvency of the company, in an attempt to avoid bankruptcy. CE Hunedoara’s debts currently total RON1.2 billion.

 CE Hunedoara holds approximately 5% of Romania’s electricity production and employs 6,257 people.  The company was set up in 2012, through the merger of state-owned thermal power producers Deva and Paroseni, and produces electricity using coal. (Puterea)

Renewable Power Producers Say Romanian State Throws Industry Into Chaos

Investors in renewable power industry criticize government’s decision to keep the mandatory renewable energy quota at a low level, for the third consecutive year, saying that the measure, based on non-updated calculations, will trigger the companies’ bankruptcy and “throw the industry into chaos".

According to a statement of the associations and employers in the renewable energy sector RWEA, PATRES, RPIA and ARmHE, producers wonder if Romania could afford the mass bankruptcy of renewable power producers.

The associations and employers in the renewable energy sector in Romania have an installed power capacity of over 5,000 MW and investments of nearly EUR8 billion in the sector. (Adevarul)

GRECO: Electoral Law Amendments Led To Better Control Over Party Funding

According to a report of the Group of States against Corruption (GRECO) on party funding, the amendments to the electoral legislation in Romania led to a better control over the funding of political parties and campaigns.

Thus, GRECO considers that the amendment in 2015 of Law no. 334/2006 on the funding of political parties and electoral campaigns was “welcomed”, as Romania took appropriate steps to ensure the access of the Permanent Electoral Authority to financial information related to party funding.

According to the report, the Permanent Electoral Authority can currently control the expenditures of the parties and candidates, as it now benefits from material, human and legal resources to fulfill its duties more efficiently.  (Puterea)

Several Medicines No Longer On The Market After Price Cut

The lowering of medical drugs price also triggered their disappearance from the market, so that people suffering from chronic diseases, including cancer, can no longer get their treatment. According to the patients’ representatives, the situation is very serious.

 As “no good deed goes unpunished”, Health Ministry is about to face a criminal complaint due to the lack of medicines on the market.

Last year, Health Ministry decided to lower the price of 1,500 drugs for chronic diseases in an attempt to support the patients, but the measure turned against it as the medicines disappeared from the market, as drug producers had previously warned.

Unfortunately, there are patients who died because they could not find the treatment, according to the patients’ representatives. (Adevarul)