Liberals To Submit No-Confidence Motion Friday
The opposition Liberal Party will submit a no-confidence motion in Parliament on Friday.
The motion seeks to dismiss the government for obstructing the right to vote of citizens in the diaspora at the last presidential election.
Mathematically, the opposition is outnumbered and the motion is unlikely to be adopted and topple Victor Ponta’s Cabinet. (Puterea)
Liberals To Contest Sova Immunity Vote At Constitutional Court
Liberal senator Mario Oprea announced Tuesday liberals will notify the Constitutional Court on the Senate vote regarding the preventive arrest of social democrat senator Dan Sova, wanted for corruption.
Oprea said the Senate’s decision to re-take the vote on June 2 creates a dangerous precedent.
Senators voted again Tuesday on prosecutors’ request to lift Sova’s immunity. The anticorruption department’s request was denied by 72 to 66 votes. (Romania Libera)
First Assessment Of Lower VAT To Be Performed End-June
A first analysis of the impact of lower VAT on food will be made at the end of the month, as VAT statements are due on June 25, Prime Minister Victor Ponta said.
The VAT cut from 24% to 9% as of June 1 should lower food prices by around 12%.
Ponta said the impact of the measure will be more apparent at the end of the year and the government expects the move will lower tax evasion.
“It’s worth dodging taxes at a VAT rate of 24%, but at 9%, not so much,” said Ponta. (Adevarul)
Businesses Seek To Reduce Bank Debt
Businesses in Romania plan to keep their bank loan debts in check or reduce them, as 64% would not take out a loan in lei and 68% would not resort to a loan in euros, regardless of costs, a central bank survey has found.
The main obstacles businesses face when seeking financing are guarantee requirements, high interest rates and bank fees and contractual clauses. Businesses also continue to rely mainly on in-house financing by reinvesting profit orselling assets (44%).
EU-funding access remains low, the survey has also found.
Taxation, competition and lack of demand, in this order, remain the top concerns for Romanian businesses. (Puterea)
Several Banks Offer Lower Interests Than First Home Program
Several banks in Romania offer prospective mortgage loan seekers lower interests on their standard mortgage loans than under the state-guaranteed First Home program.
BCR, BRD and CEC Bank have similar or lower margins than those imposed by the government-backed mortgage lending program.
The First Home program has the advantage of requiring a deposit of just 5% but, on the other hand, limits the loan amount at EUR57,000.(Romania Libera)