It is obvious that the Government’s resignation, announced at the beginning of February 2012, will generate a period of uncertainty on the Romanian investment market, all we can currently hope for being that the period of transition and transfer of authority be as short as possible and not affect the program undertaken as part of the agreement with the International Monetary Fund (IMF). Romania is now undergoing a risky period, whose main consequence can be represented by its not reaching the economic objectives undertaken, and this could be translated by investors into a blockage of transactions and funds available at a local level. According to the construction companies’ representatives, the new Executive authority should set the priorities of continuing investment projects, reducing the budget deficit as close as possible to zero level, but at the same time maintaining economic growth and reducing taxation, which creates additional pressures on the private environment.

According to the most recent budget amendment, the main changes target investment support. Thus, the Ministry of Transports and Infrastructure (MTI) will receive additional funds amounting to RON 722 million, out of which RON 500 million will be used for the payment of arrears to the National Company CFR SA, RON 155.7 million are intended for continuing investments for the projects carried out by the National Company of Highways and National Roads in Romania (CNADNR) SA and Metrorex, RON 24.5 million will be earmarked to the co-funding of European programs and the difference of RON 82.5 million will be distributed to the companies managing railway and underground transport, for granting social subsidies. Moreover, the budget of the Ministry of Regional Development and Tourism (MDRT) will receive an additional RON 430 million, mainly for the payment of arrears to the companies having performed local interest roads rehabilitation and modernization works (as per the Government Decision 577/1994), but also for the construction of housing units intended for rental to the youth and payment of the savings premiums, according to the Emergency Government Ordinance 99/2006. Last but not least, the Ministry of Culture and National Patrimony (MCPN) will receive RON 53 million, out of which RON 47 million are intended for delivering works for the National Library. Also, the registered capital of the National Credit Guarantee Fund for Small and Medium Enterprises (FNGCIMM) was increased by RON 250 million – a measure which is going to allow the granting of loans to companies, in view of generating new jobs. Former Executive authority representatives showed that the budget amendment was implemented against the background of our country’s recording between October – December 2011, an economic growth for the fourth consecutive quarter and a 4.5% Gross Domestic Product (GDP) growth, in the last six months of last year, as against the same timeframe of the previous year.

One of the projects announced for facilitating the construction of social housing intended for the youth, provided by means of the National Housing Agency, targets the application of public-private partnerships for the construction of housing units for rental, investors who become involved in these projects being to receive 30% of the amounts obtained from the related rents, until write-off. According to an emergency ordinance recently approved by the Government, Law 152/1999 on the organization and operation of ANL is amended, the new provisions indicating the fact that the amounts collected from the rental of housing units built in public-private partnership will be distributed to a share of 50% to the state budget, 20% to ANL and 30% to the investor. The new proposals will also be applied in the case of projects underway, in order to include them as soon as possible in the public domain. ANL will be responsible for the assignment of lease contracts, to be concluded for an average 20-year duration. Thus, the private investor ensures unit funding, in order to subsequently recover funds through the 30% share obtained from rent collections and other regular unit payments, which are to be reimbursed by ANL according to the law, from the MDRT budget.