News

Daily Newsletter - 1 August 2019

Summary

Macroeconomic News (3)

Romania could benefit from more than EUR 3 billion in EU funds

Romania could secure more than EUR 3 billion worth of EU funding for companies developing innovation and digitization projects, beginning with 2021, according to Svetlana Gombos, head of European Competitiveness Programs at the Ministry of European Funds (MFE). The unofficial statement was made at a conference on the future of Romania's digital market.

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Cabinet approves fiscal amnesty

Entities that owed money to the state at the end of 2018 will benefit from additional support in order to settle these debts. The government is offering to reduce the principal by up to 50% and to waive late charges for arrears above RON 1 million, according to a decree issued on Wednesday.

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Budget revision woes

Everybody wants more money: the local administration, the ministries etc. But funds are scarce and the half-year budget deficit is close to 2% of the GDP, around RON 20 billion. The Ministry of Finance would like to slash the budgets of the Ministries of Education, Health and Transport, but no firm decision has been taken yet.

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Financial News (2)

Garanti Romania posts RON 98 million in H1 earnings

The Garanti Romania group posted RON 98 million in consolidated earnings for the first half of this year, up around 25% compared to the corresponding period of last year and the best semester since the group's arrival on the national market. The group includes Garanti Bank, Garanti Leasing and Garanti Credite de Consum. The net consolidated revenues for the first six months amounted to RON 263.2 million.

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Number of false banknotes up

Last year, the National Bank of Romania (BNR) identified a total of 5,902 false banknotes, up almost 25% more from the previous year. The total value of false banknotes identified in 2018 stood at approximately RON 574,380, compared to RON 473,500 in 2017.

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Investment News (2)

RON 35 million for level crossings

The Cabinet approved on Wednesday an investment project worth 35 million in both grants and state funds for improving level crossings across the country. Spokesman Nelu Barbu said the purpose of this project is to improve traffic safety.

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Mioveni to have new hospital this year

The construction of a new 250-bed hospital will be completed in Mioveni on September 5, 2019, three years after the construction work started, according to Mioveni mayor Ion Georgescu. The project cost a total of EUR 55 million and the work started in March, 2016.

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Legislative News (1)

MFP wants negative capital companies gone

The Minister of Finance, Eugen Teodorovici, announced after Wednesday's Cabinet meeting that a bill was being drafted in order to stop associates from crediting their own companies, what is known as negative capital. The decision was reached after talks with the National Bank of Romania (BNR).

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Politics (1)

PNL angry with politicization of AEP

The National Liberal Party (PNL) denounced the Social Democratic Party's (PSD) move to staff the Permanent Electoral Authority (AEP) with party loyalists, to the detriment of professionals. "The PSD shows it does not understand the gravity of the situation the state institutions are in," said a PNL press release.

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Social (2)

Cabinet approves 2019-2020 School Program

The Cabinet approved at Wednesday's meeting a decision setting the budget for the 2019-2020 School Program at RON 540 million. The decision amends HG 640/2017.

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5% of Romanian students study abroad

About 5% of Romanian students are studying abroad, a figure similar to Bulgaria's, according to 2017 data from the Statistical Office of the European Union. According to the data, Romania ranks fifth in the list Eastern European countries based on the number of students studying abroad.

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