Romanian stocks after tax and pension policy shock
The Romanian leu and stocks firmed slightly on Friday, recouping some of their losses from Thursday when the new government was voted in, as the new prime minister denied they were planning to dismantle private pension funds.
Romanian markets plunged on Thursday after the ruling Social Democrats announced an unexpected tax overhaul, which was not discussed with business figures beforehand, and the new finance minister said they were planning to dismantle a multi-billion private pension scheme.
Hungary and Poland had taken similar steps that had upset investors and weighed on local markets for years. The private pension system in Romania was introduced in 2008 to supplement ailing state pensions.
New Romanian Prime Minister Mihai Tudose and ruling Social Democrat Party leader Liviu Dragnea later denied such a plan to liquidate pension funds exists.
On Friday the leu was 0.1 percent firmer at 0849 GMT, while the Bucharest stock market index was 0.4 percent higher, after plunging almost 4 percent the day before.
However, investors were still wary of the unpredictable policies of the ruling Social Democrats and the fiscal impacts
of the tax changes planned for 2018.
Full Content: Reuters
Remember to subscribe to our free weekly newsletter for more news or subscribe to our service to get unlimited access.
