Electrica Furnizare
CONFERINȚA "Fondurile Europene" - Ediția a IX-a
BURSA 29.08.2017

EMILIA OLESCU (translated by Cosmin Ghidoveanu)
 
mărește imaginea
     *  Dochia: "The pension fund management firms will close down on their own if the fee gets eliminated"
     *  Aurelian Dochia: "The government's communication is a permanent blunder, and the result is that nobody is interested anymore in what the authorities are saying"
     *  PFP: "The current government, starting with its own prime-minister, is characterized by a ferocious economic illiteracy"
       The 2nd pension pillar continues to be the focus of politicians, who come out with conflicting statements on the matter. After last week, PM Mihai Tudose and deputy prime-minister Marcel have confirmed that the Government is working intensely on changing this private mandatory pension system, with the "amounts paid to the 1st pillar to be a bit higher than the ones paid to the 2nd pillar", PSD leader Liviu Dragnea said on Sunday, in a televised show, that "in actuality", the talks about the cutting of the contribution to the 2nd pillar concern the elimination of the fee that the managers of these private funds collect.
     Liviu Dragnea said: "Out of the money that you are contributing, those private managers withhold a fee of 2.5%. It was approved, legislated in the beginning. They said: give us that 2.5% fee to set up the pension management companies. We've been talking for ten years. In ten years there has been plenty of money and they've had plenty of help to organize. I think that's enough. That money shouldn't be taken from your contribution, it's very simple. Somebody pays 100 lei to a specific asset management fund, of the 2nd pillar, and only 97.5 lei are booked. In other words we want to give retirees more money. That is all, there is no action directed at pension fund managers, there is no nationalization, this is a matter of streamlining, of fine-tuning, which I don't think is a bad thing".
     It is true that last week, the information has also appeared, from alleged sources quoted by Profit.ro, that one of the measures that the Ministry of Public Finance was going to take concerns the monthly fee of 2.5%. But that was another measure which was supplemental to the one according to which half the contributions to the 2nd pillar would be transferred to the 1st pillar (state pensions). Or, Liviu Dragnea claims that "in fact", the talks concern that fee, alluding, without outright saying it, that the Government doesn't want to cut the contributions of the beneficiaries to the 2nd pillar.
     If that fee gets eliminated, then the managers "will be forced to close down by default", says economic analyst Aurelian Dochia.
     He said: "We have to wonder what will happen to the fund managers, if that fee of 2.5% gets eliminated. The state will have to provide a new source of income for them. Perhaps the authorities will decide to offer them a new commission. At any rate, if the management fee gets eliminated, then the managers will be forced to close down willingly, if no longer allowed to collect that fee, or else they wouldn't be able to cover their expenses. It won't even be necessary for someone to close them down".
     Some alternatives can be discussed - like discussing the level of the commission per se and to have a different financing source for the operation of these funds. There has to be a form for the managers of the special funds to achieve revenues for the payment of salaries and rents, etc.
     I think that there have been some intentions that would turn into measures, but because every time they try, resistance arises to all the changes its is trying to make, the Government keeps changing its statements. Perhaps it is an actual communication strategy, so that things get to the point where people get tired and eventually it doesn't matter what the Government does.
     In the end, I think that the result will be that everyone starts doubting that story and the authorities will have the means to do anything, without anybody being paying attention to them. It is hard to say that this communication strategy is deliberate, but there is a permanent string of conflicting statements, and the result is that nobody is interested in what the government is doing and what it intends to do. Perhaps that is the goal, but this whole strategy also follows the reality of the confusion reigning among the authorities. All of their governing plan was made without any fundament, unsustainable measures have been taken and now they are scrambling for solutions".
     PM Mihai Tudose confirmed on Friday that the authorities are working on changing the 2nd pillar of private mandatory pensions, after the authorities vehemently denied for months the information that they were looking to shut it down. Mihai Tudose said on Friday that he has seen that the return of the 2nd pillar is far lower than that of the 1st pillar (state pensions). The prime-minister said that the median return of pension funds of the 2nd pillar between 2008 and the current year has been approximately 4%.
     Tudose wrote on his Facebook: "In the 1st pillar, the pension is calculated as the ratio between the earned salary and the median salary. That means that a person who has had an annual growth higher than 4% compared to the increase of the median salary will have upon retirement more money than a person who has also opted for the 2nd pillar". The head of the Government also gave a "concrete example" those who between 2008-2017 have been paid the minimum wage. "It increased approximately 180% during that period, whereas the median wage increased less than 100%. It follows that they had an increase of the pension point of more than 80%, compared to 40% for those who opted for the 2nd pillar as well".
     Tudose added: "The return I spoke about, calculated in relation to the pension point, concerned the amount that would be received upon retirement in the two situations: the person who opted for the 2nd pillar versus the one that didn't".
     Tudose's numbers differ from the ones reported in the market. "Between May 20, 2008 - May 19th, 2017, representing the first nine years of the 2nd pillar, all the private pension funds have seen an annual median return of 9.46%, according to the calculations of the APAPR", according to a June press release of the Association for Privately Managed Pensions of Romania (APAPR).
     The "Uniunea Salvați România" party (Save Romania Union - USR) called the PM's statements about the returns of the two pension pillars as "aberrations": "The aberration of the day came from the prime-minister: the return of the 1st pillar is higher than the return of the 2nd pillar. In fact, the 1st Pillar cannot have a return cannot have a return because it is not an investment, like the 2nd pillar".
     The USR further said: "Furthermore, the 1st pillar has a deficit of 21 billion lei in 2016, and a predicted deficit of 28 billion lei for the end of 2017. Unfortunately for Romania, Mihai Tudose is, from a professional and political point of view a dunce, according to the very evaluation of the PSD".
     * PFP: "Take your hands off our pensions"
     "Take off your hands off our pensions", begins the press release of the Association of Pension Funds and Investment Funds Participants (PFP), which says that it has "been shocked at the recent statements made by PM Mihai Tudose and of the other members of the Government concerning the superior return of the 1st Pillar (managed by the state) compared to the 2nd pillar pension funds".
     The aforementioned press release states: "The PFP thinks that the current government, starting with its own prime-minister, is characterized by a ferocious economic illiteracy, whose harmful consequences will negatively affect both Romania's economy overall, as well as every Romanian".
     The Association also adds that the "public pension system has been at a deficit since 2009, and that deficit is reaching dizzying amounts, of even 15 billion lei (approximately 3.5 billion Euros)". "The use of the word «return» in relation to a government which doesn't invest any part of the amounts it collects beggars belief": "It is impossible for us to understand how the prime-minister and the Government don't know the fact that the current public system is nothing more than a pipeline by which the social contributions paid by the current employees are transferred to current retirees in the form of pensions. There is no accumulation, no investing of money from the pension system to the benefit of the current employees or retirees. In other words everything that is produced is consumed instantly and in order to cover the deficit, there are also loans made".
     The government is only interested in one thing: getting money to cover the huge staff and pensions expenses it has engaged in without any prior analysis, the representatives of the Association further say. "Unfortunately, the issue is a lot more serious, and the emptying of the 2nd pillar is just one phase. There will be other stages, where the Government, in its rush for money, and once the amounts in the 2nd pillar prove insufficient, will also apply other measures which will eventually turn against Romanians. (...) Hence why we get the Exchange rate of 5 lei for a Euro or higher interest rates will be a reality soon. Let's think of what that will mean individually, for the Romanians that have taken out loans, especially during this period of low interest rates - we will once again be talking about people who are financially burdened. And let's apply that image to the economy overall - the consequences could be disastrous. The government is behaving just like a medieval lord, who offers electoral handouts presents to the population to get his tranquility for a while. To them, it doesn't matter that the country doesn't have roads, schools and hospitals and that the treasury is emptying, and more money only comes from expensive loans or new taxes".
     On May 19th, 2017, exactly 9 years after the actual launch of the 2nd pillar, the number of participants in these funds has reached almost 6.9 million Romanians, and the net assets under management have exceeded 35.1 billion lei (7.7 billion Euros). 
 

 
Readers' comments    [ add a comment ] 
Aceeasi sectiune (English Section)
AFTER FINDING THAT THE STRATEGY OF RAIFFEISEN BANK WAS DISHONEST
AT THE INVESTIGATIVE COMMISSION OF THE ACTIVITY OF THE ANRE
RADU CRĂCIUN, APAPR, ABOUT THE INVESTMENT OF PRIVATE PENSION FUNDS IN DIGI, A COMPANY WHICH HAS CRIMINAL ISSUES:
UNICREDIT WARNS THAT THE ROMANIAN GOVERNMENT IS REPEATING MANY OF THE MISTAKES THAT HAVE LED TO THE RECESSION OF 2009-2010
AFTER BEING FORCED TO MOVE THE BRD NĂSTASE ȚIRIAC TROPHY TOURNAMENT TO BUDAPEST
THE CONFERENCE "THE FUTURE OF THE ROMANIAN CAPITAL MARKET" - THE 6TH EDITION/MIRCEA URSACHE, ASF:
Ediții precedente
Newsletter Facebook Twitter YouTube LinkedIn RSS
Jurnal Bursier
20.10.2017
BVB
     Ședința din penultima zi de tranzacționare a săptămânii a înregistrat o lichiditate de 32,82 milioane de lei, mai mare decât cea înregistrată miercuri, de 31 milioane de lei, dar sub media zilnică...  detalii
20.10.2017
BURSELE DIN LUME
     Acțiunile companiilor listate la bursele din Europa au scăzut ieri, din cauza escaladării tensiunilor politice din Spania.  detalii
19.10.2017
BVB
     * Acțiunile "Aerostar" - avans de aproape 15%, după semnarea memorandumului cu "Raytheon International Defence System" privind înzestrarea armatei cu sisteme Patriot
       Piața Bursei de Valori București (BVB) a înregistrat, în ședința de tranzacționare de ieri, o lichiditate de 31 milioane de lei (6,75 milioane euro), sub media zilnică a acestui an (48,13 milioane...  detalii
19.10.2017
BURSELE DIN LUME
     Bursele europene s-au înscris pe un curs pozitiv ieri, investitorii fiind atenți la rezultatele financiare anunțate de companii.  detalii
18.10.2017
BVB
     * Creșteri pe linie pentru toți indicii bursei
     * Acțiunile "Impact Developer & Contractor" înregistrează un salt de 3,04%
       După evoluția mixtă de luni a indicilor Bursei de Valori București (BVB), ședința de tranzacționare de ieri a fost marcată de creșterea generală a pieței, în contextul unui rulaj de aproape 24...  detalii
18.10.2017
BURSELE DIN LUME
     Acțiunile tranzacționate la bursele din Europa au scăzut ieri, în majoritate, în special cele din sectorul auto, din cauza slăbirii cererii din domeniu.  detalii
Cotații Internaționale

Curs Valutar

Curs valabil din data de 20 octombrie 2017
1 Dolar australian...
1 Leva bulgărească...
1 Dolar canadian....
1 Franc elvețian...
1 Coroană cehă...
1 Coroană daneză...
1 Liră egipteană...
1 Euro...
1 Liră sterlină...
100 Forinți maghiari...
100 Yeni japonezi...
1 Leu moldovenesc...
1 Coroană norvegiană...
1 Zlot polonez...
1 Rublă rusească...
1 Coroană suedeză...
1 Liră turcească...
1 Dolar S.U.A...
1 Rand sud-african...
1 Real brazilian...
1 Renminbi chinezesc...
1 Rupie indiană...
100 Woni sud-coreeni...
1 Peso mexican...
1 Dolar neo-zeelandez...
1 Dinar sărbesc...
1 Hryvna ucraineană...
1 Dirham emirate arabe...
1 Kuna croată...
1 Bahtul thailandez...
1 Gram aur...
1 DST...
AUD
BGN
CAD
CHF
CZK
DKK
EGP
EUR
GBP
HUF
JPY
MDL
NOK
PLN
RUB
SEK
TRL
USD
ZAR
BRL
CNY
INR
KRW
MXN
NZD
RSD
UAH
AED
HRK
THB
XAU
XDR
3,0552
2,3507
3,1140
3,9646
0,1788
0,6176
0,2207
4,5975
5,1203
1,4922
3,4365
0,2242
0,4883
1,0831
0,0676
0,4769
1,0615
3,8945
0,2846
1,2299
0,5882
0,0599
0,3443
0,2062
2,7187
0,0386
0,1467
1,0603
0,6125
0,1174
160,3963
5,4940
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
..Lei
click aici pentru cursurile pieței valutare - istoric
English Section
19.10.2017
AFTER FINDING THAT THE STRATEGY OF RAIFFEISEN BANK WAS DISHONEST
     * Daniel Zamfir: "It has been proven that Raiffeisen has cheated people. There is nothing left to debate"
     * Bogdan Pandelică: "The order for the cessation of the unfair practice of Raiffeisen Bank has been issued, I will sign it in a few days"
       All the banks that have granted CHF loans will be audited by the National Consumer Protection Authority (ANPC), its chairman Bogdan Pandelică, announced yesterday in the Economic Commission of the Senate.  details
18.10.2017
OVIDIU DEMETRESCU, ARBA:
     * The management of the company accepted two applications that were sent in late, for the elections of October 26th, claiming they were submitted "within reasonable delays"
     * "I think that we are embarrassing ourselves, by the mere fact that we were able to interpret the law in such a way", said Ovidiu Demetrescu
     * "Demetrescu: "ASF and BVB should react, in the case of Electrica, if they had a management with a free spirit"
       The directors of "Electrica" (EL) violated the law when accepting the applications backed by the government for the elections of the new management, recorded eight minutes after the deadline from the convening notice, claiming they were submitted "within a reasonable delay", says Ovidiu Demetrescu, the president of the Romanian Association for Good Management (Asociația Română de Bună Administrare - ARBA).  details
16.10.2017
EXCLUSIVE
     * "The US and Saudi Arabia - the main sponsors of terrorism in the world"
     * (Interview with His Excellency, Mr. Hamid Moayyer, ambassador of the Republic of Iran in Romania)
       Donald Trump, the United States president, must decide by October 15th whether or not he will certify if Iran has followed the terms of the nuclear agreement signed in 2015 by Iran and six major western powers.  details
12.10.2017
EARTHLY LAWS, IGNORED ON THE BSE PLANET
     The Bucharest Stock Exchange (BVB), the operator of the Romanian capital market, still stands by the nonsensical claim made by its former CEO Ludwik Sobolewski, that his contract expired on August 21st, but not his mandate.  details
12.10.2017
AT THE INVESTIGATIVE COMMISSION OF THE ACTIVITY OF THE ANRE
     * Sources: PSD has four names for the head of the ANRE
     * Rumored names: Florentin Pandele, mayor of Voluntari, Iulian Iancu, president of the Industries Commission, former prime-minister Sorin Grindeanu and deputy Eugen Nicolicea
       Niculae Havrileț, the president of the National Authority for Regulation in the Energy Sector (ANRE), together with other members of the Regulatory Committee of the ANRE, will arrive before the Commission for the Investigation of the activity of the ANRE.  details
11.10.2017
RADU CRĂCIUN, APAPR, ABOUT THE INVESTMENT OF PRIVATE PENSION FUNDS IN DIGI, A COMPANY WHICH HAS CRIMINAL ISSUES:
     Mandatory private pension funds which have invested in Digi Communications, the parent company of RCS&RDS, which was indicted on money laundering and offering bribes, have taken this operating risk into account, by offering a lower price in the IPO, Radu Crăciun, member on the Board of Directors of the Romanian Association of Privately Managed Pensions (APAPR).  details
09.10.2017
     President of BURSA Press Group, Florian Goldstein (MAKE), participated, as speaker, on September 26th, at a debate regarding the future of the European Union, in Brussels, at the invitation of Group of the European People's Party.
     The subject of the debate can be synthesized in four questions:
     1. Would it be recommendable for the EU Non-Eurozone States to adopt Euro currency?(...)
     -------------
     Question nr.1 answers given by my fellow citizens are divided, and this summer polemic between the Euro MP Theodor Stolojan and Daniel Daianu (member of the Romanian National Bank Board of Directors) in the financial newspaper BURSA has shaped up the idea we could adopt Euro anytime (given the condition of maintaining the macroeconomic balances), an idea opposed to the one claiming Euro adoption should wait till the convergence criteria would be fulfilled.  details
09.10.2017
UNICREDIT WARNS THAT THE ROMANIAN GOVERNMENT IS REPEATING MANY OF THE MISTAKES THAT HAVE LED TO THE RECESSION OF 2009-2010
     * Vasilescu: "There are many crystal ball readers, even in the banking system"
     * UniCredit estimates that the leu will continue to weaken against the Euro to 4.6-4.7, in the first quarter of 2018, and that the policy rate will increase to 2.5%
       UniCredit Bank analysts are issuing a warning that the Romanian government is repeating many of the mistakes that have led to the recession of 2009-2010. The quoted experts are mentioning both the fiscal policy that is risky for the economy, as well as the fact that the leu will significantly weaken in 2018, and the deficit may increase to 3.7%. Among other things, the UniCredit report issued on Friday predicts an EUR/RON exchange rate of 4.7 and a policy rate of 2.5%, for the beginning of next year.  details
05.10.2017
AFTER BEING FORCED TO MOVE THE BRD NĂSTASE ȚIRIAC TROPHY TOURNAMENT TO BUDAPEST
     * Ilie Năstase: "If I was Țiriac, I would sue Mugur Isărescu"
       PNL senator Daniel Zamfir, president of the Budget Commission in the Senate, a vocal critic of the banking system, of the NBR and of its governor is adamant about bringing up the activity of the NBR from all angles.  details
03.10.2017
     * The BSE may be taken off the watchlist
     * FTSE only noted improvements when it comes to stock lending, while the liquidity requirement has not yet been met
     * Poland, upgraded to the emerging market status
     * Mongolia and Nigeria, removed from the watchlists
       The Bucharest Stock Exchange (BSE) remains a frontier market, for at least a year, after, on Friday night, FTSE Russell did not give promote it.  details
02.10.2017
     * Iulian Iancu: "We shouldn't stand out by being silent in Brussels and be forced to give natural gas to the neighboring countries, by taking it away from our industrial consumers"
     * Emil Calotă: "If we do not take action, the natural gas stored by the Romanian producers will remain unused, because there will be far cheaper imported gas available"
       The National Authority for the Regulation of the Energy Market (ANRE) has asked for the reconsideration of gas storage policies in Romania to be made a priority, Emil Calotă, the vice-president of the ANRE recently said, in the debates in the Industry Commission of the Romania Parliament about the Draft Law concerning the approval of the Government Emergency Ordinance no.64/2016 for the amendment and completion of the Law of Electricity and of natural gas no. 123/ 2012.  details
29.09.2017
LUCIAN ANGHEL:
     We can't expect Romania to be upgraded to the emerging market status right now, BSE president Lucian Anghel said yesterday, as FTSE Russell will publish today its annual classification report.  details
28.09.2017
     Central European Media (CME), the owner of Pro TV, is currently in negotiations to sell the four TV stations it still holds in Central and Eastern Europe, according to Echo 24, which quotes several concerned sources.  details
27.09.2017
     The Romanian Commercial Bank (BCR) is saying for the first time, that the sale of the Cemacon was made at a price of 1 Euro, and the lender stressed that this was done to save the company.  details
26.09.2017
THE CONFERENCE "THE FUTURE OF THE ROMANIAN CAPITAL MARKET" - THE 6TH EDITION/MIRCEA URSACHE, ASF:
     * Cappon, Prodan and Sobolewski yesterday had their interviews for the position of CEO of the BSE
     Ludwik Sobolewski is no longer the CEO of the Bucharest Stock Exchange (BVB), Mircea Ursache, the vice-president of the Financial Oversight Authority (ASF) said yesterday. He added that the ASF has conducted an analysis concerning corporate governance at the BSE.  details
.