News

Daily Newsletter - 25 February 2020

Summary

Macroeconomic News (4)

Banca Transilvania economists see 3.6% GDP growth

Economists working for Banca Transilvania expect the national economy to grow by a below potential 3.6% this year, due to the rebalancing of domestic economic policies, as well as the international and eurozone situation. Strategic investors are expected to consolidate their position in Romania, whose labor will continue to be cheaper compared to the core EU countries. Nevertheless, Romania will continue to close the gap with the developed nations in the European Union by growing above the EU average.

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Office space to be market star in 2020

2020 is likely to be the best year for real estate investments in Romania since the financial crisis. Offices will be the star of the market, with transactions expected to pass EUR 600 million in this market alone. The performance will be sustained by yields exceeding those of other countries in the region, as well as the good macroeconomic situation, according to Colliers experts.

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Insolvencies down 7.4% in January

The number of companies and individuals that file for insolvency reached 463 in January, down 7.4% compared to the previous year, according to the Trade Registry (ONRC). Bucharest reported 80 cases, down 15.79%, followed by Bihor county (59), Cluj county (29) and Constanta (26).

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14% of local companies innovate

Companies that introduced new (or significantly improved) products or business processes on the national market accounted for only 14.6% of the total between 2016 and 2018, according to the preliminary results of a survey conducted by the National Statistics Institute (INS). The figure is 4.4 base points higher compared to the previous survey.

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Financial News (3)

15% of local loans go to heavy polluters

15% of all the corporate loans granted by local banks go to companies that generate a lot of carbon dioxide, according to the 2019 Stability Report presented by Cristian Popa, a member of BNR's board. "An analysis of financial indicators showed that companies that generate high amounts of CO2 are three times less profitable than low impact companies," said Popa.

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ROBOR keeps falling

The National Bank of Romania (BNR) announced that the three-month ROBOR rate dropped to 2.98%, the lowest figure since November 19, 2019.

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Libra Bank to double bond issue

The Board of Directors at Libra Internet Bank, headed by Radu Ghetea, a veteran of the national banking system, intends to double to EUR 20 million the issue of bonds approved by shareholders last autumn. Libra Internet Bank has called a shareholder meeting for March 23, 2020, to vote on this proposal.

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Investment News (1)

PORR to invest EUR 10 million in asphalt plants

Austrian construction company PORR, currently working on a number of Romanian projects, will invest EUR 10 million in its local asphalt plants. The company runs two plants in Arad and Buftea (close to Bucharest) and is planning to open a third in Sibiu.

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Politics (2)

CCR issues shock ruling

The Constitutional Court ruled on Monday that President Klaus Iohannis must restart the prime minister nomination procedure from scratch. The nominee can be anyone who has a strong support in Parliament.

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Ciolacu: "I don't think PSD will put forward a prime minister"

The Social Democratic Party (PSD) will mostly likely refrain from presenting President Iohannis with a prime minister proposal, according to party leader Marcel Ciolacu. Apparently, Ciolacu discussed a joint nomination with Pro Romania's Victor Ponta, but their choice, Dr. Raed Arafat, declined the proposal.

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Social (2)

CSAT meeting called over coronavirus

President Klaus Iohannis announced on Monday that he would call a meeting of the Supreme Homeland Defense Council (CSAT) in order to discuss the strategy for preventing a coronavirus outbreak in the country. "Things have changed rapidly in the last few days regarding the number of cases in Europe, especially in Italy. The situation there is causing much concern among Romanian citizens, given the close links and the community of Romanians there. I am in contact with the institutions, to monitor what happens in the areas where people are quarantined," said the president.

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Ministry of Education asks inspectorates to limit or cancel foreign trips and mass events

The Ministry of Education has asked the school inspectorates to limit or cancel foreign trips and mass events. The events scheduled under the "Scoala altfel" program will be held in schools because of the worrying health situation and the rising number of flu cases.

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