Press Review - July 2, 2015

07.02.2015 By Gabriela Stan

Romania Raises Household Gas Prices By 11%

Romania’s energy regulator ANRE on Wednesday approved an increase of nearly 11% in natural gas prices for household consumers, but said prices will no longer be raised by the end of 2015.

"The price increase considered the following factors: the increase in prices of current domestic production from RON53.30/MWh to RON60.00/MWh, with an impact of nearly 6.5%; including the percentage of imported gas during winter, with an impact of nearly 1.5%; including the quantities of gas to be extracted from storage deposits during winter, with an impact of nearly 4.5%; the decrease in the unitary transport costs, with an impact of nearly -1.5%", ANRE said in a statement.

Greek Shareholders Could Lose Voting Right Within Local Banks If Withdrawing Capital

A capital withdrawal "overnight," before the due date, is not at all in Greek shareholders’ best interest as they might lose their voting right within local banks, Romanian central bank governor Mugur Isarescu said Wednesday.

"Financing lines from parent banks in Greece account for nearly 27.5% of total liabilities and the bulk of financing lines, of 81%, have a due date greater than one year. The assets in the portfolios of these banks, which are eligible for financing at BNR, are almost double compared to the liquidity needs if financing lines from parent banks are not fully renewed throughout this year," said Isarescu.

Isarescu also pointed out that the decisions made by Greek authorities do not apply to the Romanian units of Greek banks, as they have no direct influence. (Adevarul)

Romania Central Bank Leaves Key Rate Unchanged at 1.75%

Romania’s central bank kept its main monetary policy rate unchanged at 1.75%, as fears over a possible Greece exit from the euro-zone outweighed the extremely low inflation prospects.

The bank also kept its minimum reserve requirement ratios at 8% for leu deposits and at 14% for foreign currency deposits.

The central bank sees the inflation rate near zero for the next three to four quarters, following the government’s decision to cut the value added tax rate for all food products to 9% from 24% starting June 1. The inflation prospects are further lowered by the adoption of a new Tax Code, which includes the cut of the standard VAT rate to 19% as of next year. (Puterea)

MEP Maria Grapini Joins Humanist Power Party

MEP Maria Grapini announced Wednesday that she joined the Humanist Power Social-Liberal Party (PPU-SL).

"I have already joined the Humanist Power Party, I waited for the Congress on setting up ALDE. I consider I have not left PC. I have sent an open letter to president Daniel Constantin, we had talks, I told him we should not give up the party. From my point of view, he made an unstatutory decision, but that’s his problem. Right after ALDE Congress, I decided to join a new party, the Humanist Power Party," Grapini said. (Romania Libera)

PSD Mulls Notifying Constitutional Court On Vote Validating Mihai Razvan Ungureanu As SIE Head

PSD members plan to notify the Constitutional Court (CCR) regarding the vote in the Parliament on the validation of Mihai Razvan Ungureanu as head of the Foreign Intelligence Service (SIE), according to political sources.

Moreover, social-democrat leaders want to eliminate Chamber of Deputies speaker Valeriu Zgonea for having supported the validation of Mihai Razvan Ungureanu as SIE head against the will of his own party. Thus, Marian Neacsu, leader of PSD deputies, will coordinate the social-democrats’ action and is already gathering signatures within the party to notify CCR. PSD intention was partially confirmed by Chamber of Deputies vice-president, PSD deputy Florin Iordache. (Adevarul)