October 22, 2013
Click here for a roundup of domestic and international news
Bogdan Matei, 22.10.2013, 13:00
ECONOMY – A joint mission by the IMF, European Commission and the World Bank is in Bucharest as of today, to assess the new precautionary agreement with Romania. The delegation will have talks with the authorities, representatives of political parties, trade unions, business associations, banks and civil society. In September the IMF Board approved the letter of intent submitted by Bucharest with respect to a new stand-by agreement worth around 2 billion euros and valid for two years. Another 2 billion euros will come from the EC. This is the third such agreement requested by Romania from the IMF, since the start of the economic crisis. The first one was signed in 2009, and the second one in 2011.
POLITICS – The prime minister of Romania Victor Ponta is talking in Washington today with the US vice-president Joe Biden about the strategic political and military partnership of the two countries and a prospective change in the American visa regulations. On Monday, PM Victor Ponta met with American businessmen, whom he assured that the government in Bucharest is a reliable and predictable partner. He said the country’s energy independence is a national strategic objective, and the Romanian government will support the exploration of unconventional resources, provided that their development will not affect the environment.
STOCK MARKET – As of today and until the end of this month the Romanian government puts up for sale 15% of the stock of Romgaz, both in the Bucharest Stock Exchange and, for the first time, at the London Stock Exchange. The government hopes for revenues between 300 and 400 million euros. As much as 15% of the shares put up for sale will be earmarked for small investors, with the bulk of the stock will be sold to institutional investors. Romgaz owns over a half of the country’s natural gas reserves and development facilities, and is the largest gas producer and supplier in Romania.
PARLIAMENT – The Chamber of Deputies is to vote today on a simple motion tabled by the two main opposition parties, the right-of-centre Liberal Democratic Party and the Populist Party headed by Dan Diaconescu, with respect to the Insolvency Code. In Monday’s debates in the Chamber, the authors of the motion demanded that the leftist government should withdraw the emergency ordinance that promoted the Insolvency Code, which they view as an unprecedented attack against the freedom of the media and the business environment. In response, prime minister Victor Ponta argues that the law is intended to more efficiently fight tax evasion.
NATO – The Romanian defence minister, Mircea Duşa, will take part today and Wednesday in Brussels in a meeting of the NATO defence ministers. Participants will examine the organisation’s defence capabilities, including anti-missile and cyber defence, as well as the funding and a reform of the Alliance. Other topics will include the transition process and the development of the capabilities of the Afghan security forces. We remind our listeners that Romania will support the Pentagon in the pullout of its over 50 thousand troops from Afganistan, in 2014. The air base in the south-eastern Romanian village of Mihail Kogălniceanu will thus be a key point in the transit of the US forces.
SPORTS – Romania’s football champions, Steaua Bucharest, are playing tonight on home turf against the Swiss side FC Basel, in group E of the Champions League. In the other game in this group, Chelsea take on the German side Schalke 04, away from home. With no points after two games, Steaua is last in a group E dominated by Schlake 04. Romania’s vice-champions Pandurii Targu Jiu will play on Thursday against Fiorentina, in the Europa League.
