Press Review - June 10, 2015

06.10.2015 By Gabriela Stan

INS: Romania Trade Deficit Widens To EUR2B In January-April

Romania’s imports grew more quickly than exports in the first four months of the year and the country’s trade deficit widened to 2.02 billion euros, the statistics office said.

In January-April 2014, the trade gap was EUR1.76 billion.

Imports rose 5.9% on the year to EUR19.8 billion, while exports were 5% higher, at EUR17.8 billion, the data showed.

Vehicles amounted to 44.2% of overall exports and 36.7% of the imports in the first four months, while other manufactured items made up for 33.3% of Romanian exports and 31.4% of imports.

President Klaus Iohannis And PM Victor Ponta Enter Political Cohabitation Stage  

After six months of showing a friendly position towards the Prime Minister, President Klaus Iohannis has immediately changed the approach after the Chamber of Deputies voted against the start of criminal probe against Victor Ponta.

Romania's Chamber of Deputies voted 231 to 120 to not strip Prime Minister Victor Ponta of his immunity so he could face a criminal probe launched by the anticorruption department.

Ponta, who is accused of falsifying documents, tax evasion and money laundering, refused to step down as head of the Cabinet last week, saying only the Parliament may decide whether or not he should be dismissed from office. Ponta's Social Democratic Party and its allies hold majority in Parliament. (Adevarul)

New Household And Corporate Loans Totaled EUR3.6B In January-April

The volume of new household and corporate bank loans granted in the first four months of 2015 totaled approximately EUR3.6 billion, according to Romanian Banking Association (ARB).

According to ARB, government credit stood at EUR19.4 billion, while private lending totaled EUR47.53 billion. On the other hand, the ARB representative said that the loans/deposits ratio stood at 93.68% in March 2015.

At the same time, deposits rose constantly, ARB data show. Between 2008 and 2015, the volume grew by 75%, to RON 228 billion. Moreover, considering the EUR1.6 billion net losses registered by the banking system in 2009-2014, bank shareholders brought additional capital of EUR1.8 billion during the same period.  (Romania Libera)

Medicine Price Cut To Trigger Bankruptcy For Certain Local Producers

Romanian pharmaceutical producers warn that the decision to cut medicine prices will trigger the withdrawal of certain products from the market and bankruptcy of local producers, according to Dragos Damiam, head of the Association of Generic Medicine Producers in Romania (APMGR).

According to market research company Cegedim, the drugs price cut mainly impacts Romanian medicine plants, whose turnover is estimated to fall by over 25%.

“This price collapse, involving a turnover collapse, will lead to the disappearance or voluntary withdrawal from production of medicines below the cost threshold, to the decrease of technological level and competitiveness and to less taxes collected by the Romanian state, as all Romanian drug plants are entities which pay local taxes,” Damian said.  (Adevarul)

Farmers Get EUR8.8M For Fruit Processing, Product Marketing

Farmers will get EUR8.8 million for fruit processing and product marketing, as Agriculture Ministry representatives want to encourage farmers to also manage the processing of their production.

Romania got official approval from the European Commission for National Rural Development Program 2014 - 2020. Thus, Romanian agriculture will get European funds for agriculture worth EUR8.128 billion this year, namely 8.18% of the European Agricultural Fund for Rural Development. (Adevarul)