Press Review - May 10, 2016

05.10.2016 By Gabriela Stan

Mugur Isarescu Says That Not Any Kind Of Economic Growth Can Ensure Convergence With Western Economies

Central bank governor Mugur Isarescu stated that not any kind of economic growth can ensure convergence with western economies, at the launch of the 2016 spring edition of the Regional Economic Outlook by the International Monetary Fund (IMF).

Moreover, Isarescu said that Romania does not need to repeat a new correction in less than ten years and considers that Romanians are not ready to understand what economic growth sustainability means.

The central bank governor added that structural reforms are necessary as the fiscal and monetary policy can only provide a proper framework for structural reforms. According to Isarescu, with a constant economic growth, of 1% per year, Romania can reach 80% of the EU average GDP per capita in the next 25 years. (Puterea)

Banks Tighten Lending Conditions On Implementation Of Debt Discharge Law

There are three days left until the law on debt discharge comes into effect and commercial banks have launched a major offensive, raising the down payment on mortgage loans, increasing interest rates and reducing the reimbursement period.

Romania’s largest lender by assets, BCR, announced Monday it raised the down payment required on mortgage loans from 15% to 35% and cut the reimbursement period from 30 years to 25 years, on the backdrop of the new legislation allowing retail mortgage borrowers to return real estate collateral to banks in exchange for writing off their loans.

BCR is the ninth bank to raise the down payment on mortgage loans. BRD, Alpha Bank and CEC Bank said last week they will raise the down payment required on mortgage loans, joining Raiffeisen Bank, which was the first bank to make such a decision.

BCR also increased the minimum amount to be borrowed, from RON22,000 to RON45,000. (Adevarul)

President Klaus Iohannis Signs Decree On Resignation Of Health Minister

Romanian President Klaus Iohannis on Monday signed the decree on the resignation of Health Minister Patriciu Achimas-Cadariu, establishing that Prime Minister Dacian Ciolos will take over interim office, according to the Presidential Administration.

Health Minister Patriciu Achimas-Cadariu resigned amid the scandal of the improper disinfectants used in the Romanian hospitals.

United States Ambassador to Romania, Hans Klemm, asked the Romanian authorities to pay more importance to the healthcare system, in the context of the latest scandals. (Romania Libera)

PSD President Liviu Dragnea Considers No-Confidence Motion

PSD president Liviu Dragnea said he had talks with ALDE co-chair Calin Popescu Tariceanu about submitting a no-confidence motion, considering the setup of a political government, given that President Klaus Iohannis is appointing the PM.

"This is an issue that I have discussed with Mr. Tariceanu. We are analyzing the chances to appoint a political government. We get to Mr. Iohannis and we face instability," said Liviu Dragnea, asked whether he plans to submit a non-confidence motion.

Dragnea announced that PSD will submit a simple motion against Agriculture Minister, Achim Irimescu, adding that it would have also submitted a simple motion against Health Minister, Achimas Cadariu, but, in the meantime, he resigned. (Adevarul)

PM: Healthcare, Education, Among Priority Sectors At Budget Revision

The healthcare and education sectors will be among the priority sectors for the reassignment of the funds at the budget revision, Prime Minister Dacian Ciolos said Monday, adding that he "won’t cut more" of what has been already approved in the Budget Law.

Ciolos explained that the Finance Ministry blocked 10% of the state budget, not the education budget, to be able to control the budget deficit if a lower collection level or the new fiscal incentives would put pressure on the deficit.

The PM added that the 10% funds will be unblocked for education and the other priority sectors, adding that the education and healthcare sectors will be the first to get funds reassigned from other sectors at the budget revision. (Puterea)