Press Review - March 15, 2018

03.15.2018 By Oana Gavrila

Romania To Host Black Hawk Helicopters Maintenance Center for Central Europe

Romania's Romaero and Sikorsky, part of US defense contractor group Lockheed Martin, signed an industrial partnership agreement for the equipment and maintenance of Sikorsky UH-60 Black Hawk helicopters in Central Europe.

The center in Bucharest will be the sole center authorized by Lockheed Martin for Black Hawks in Central Europe, the Romanian Ministry of Economy said in a statement.

Capping Interest Rates Restricts Access to Financing for Millions of Romanians

A cap on interest rates, currently under debate in parliament, would lead to lower household lending, would reduce consumption and could affect investments, thus hindering economic growth leading, according to a study by KPMG Advisory.

Romanian banking associations have called on Parliament to ensure real and constructive dialogue on the bill that seeks to limit interest rates on bank loans and to extend the public debate period by 60 days to assess the impact such a measure would have in practice.

The study shows a cap on interest rates would toughen lending conditions, thus reducing lending, which would have a direct impact on consumption (acquisitions of homes, durable goods, and fast moving consumer goods) and the net wealth of individuals.

The bill on capping interest rates seeks to limit effective annual interest rates on mortgage loans at 2.5 times the central bank reference rate and to 18% a year on personal loans.

SME Council: New Single Tax Form Doesn't Simplify Reporting, Burdens Taxpayers

The new taxation mechanism proposed under the single income tax form “is not simple and requires more effort from taxpayers”, the SME Council said in a statement Wednesday.

“Although it contains major improvements, the new mechanism increases the responsibility of taxpayers, who would now have to calculate, report, and pay their taxes and social security contributions based on their own calculations,” the Council said.

It added the tax form is very complex and the deadline for its submission is less then three months although the normative act is not yet in force.

President Asks Parliament To Reexamine Bill On National Integrity Agency

Romanian President Klaus Iohannis on Wednesday asked Parliament to reexamine the bill that amends the law on the National Integrity Agency (ANI).

The bill eliminates a three-year ban on running in elections for lawmakers found under conflict of interests between 2007 and 2013.

Iohannis argued the bill damages standards of integrity and questions Romania’s commitments as a member of the European Union. He added the bill does not meet the demands of Romanian society.

The president also said the National Integrity Agency is one of the four benchmarks within the European Commission’s Cooperation and Verification Mechanism (CVM) on Romania, set up at the accession of Romania to the European Union in 2007 to address shortcomings in judicial reform and the fight against corruption. He said regulations concerning the fight against corruption and promoting integrity within the public sector address the real demands of Romanian society and are a key element in Romania’s dialogue with its European partners.

Court Orders Teen Guilty of Drug Trafficking to Finish High-School

A teenager in Iasi county, northeastern Romania, was sentenced for drug trafficking and ordered by the court to finish his high-school studies.

The teen will be placed under probation for six months and must finish high-school in lieu of a jail sentence.

The ruling is not final and may be appealed.