News

Daily Newsletter - 24 June 2021

Summary

Macroeconomic (3)
Financial (3)
Investment (3)
Legislative (2)
European News (1)
Social (1)
Macroeconomic 
Romania has the cheapest food products in EU
Prime Minister Florin Cîțu says that Eurostat data on the level of prices for consumer goods and services in the European Union confirm that Romania has the cheapest food products. He claims that the "boom of prices" is fake news. Overall, the level of prices for consumer goods and services in the European Union has varied by almost one to three between the cheapest and the most expensive EU member state.
Ziarul Financiar organized the video conference "Biggest Players in Economy. Time for Action 2021"
The current moment is perfect for boosting investments in local economy, as investors are trying to make plans on a long term. This was one of the conclusions of ZF video conference "Biggest Players in Economy. Time for Action 2021". The event was organized by Ziarul Financiar in partnership with Vodafone Romania, Ijdelea Mihailescu law firm, DP World Constanta, EY Romania, Immofinanz, ING Bank Romania, ONV Law, Noerr, Aqua Carpatica, CITR and Antibiotice.
State loans have grown by over 18% in the past 12 months
State loans grew by over 18.1% (or by 13.9% in real terms) in May 2021, compared to the same month of 2020, to nearly RON 160.88 billion, as a result of the increased spending of the government and local administrations. Moreover, state loans were up 1.7% against April 2021, according to data published by the National Bank of Romania (NBR) yesterday.
Financial 
Deposits of resident non-government clients grew by 0.6% in May 2021
Deposits of resident non-government clients grew by 0.6% in May 2021 compared to the previous month, to RON 435.903 billion, and by 13.7% (9.5% in real terms) compared to May 2020. Residents’ deposits in RON, accounting for 65.1% of total deposits of non-government clients, increased by 0.5% compared to April 2021, to RON 283.768 billion and by 15.4% (11.3% in real terms) compared to May 2020.
9 out of 10 requests for re-registration from Credit Bureau are rejected by banks and IFNs
The Alternative Banking Dispute Settlement Centre (CSALB) sends the received requests to credit institutions or to non-banking financial institutions (IFN), but 9 out of 10 requests for re-registration from the Credit Bureau are rejected by banks and IFNs. The organization indicates that the de-registration decision belongs to traders and no longer involves a negotiation within the Center.
Banca Transilvania is part of a new grants program
Banca Transilvania is part of a new grants program, this time for the HoReCa sector, which means non-reimbursable financing for SMEs activating in the hospitality industry: hotels, restaurants, guest houses, travel agencies and event organizers. Entrepreneurs can benefit from financing of up to 20% of the turnover decline recorded in 2020, compared to 2019, with a maximum limit of EUR 800,000.
Investment 
Hidroelectrica has awarded a contract for the modernization of five 20 kV
Hidroelectrica has signed the contract for the modernization of the 20 kV stations Voila, Viştea, Arpașu, Scoreiu and Avrig, located on the Olt Superior sector. The works, initially estimated at RON 1,388,566.75, VAT not included, will be carried out by the association formed of Energotehnica (Leader), Energoconsult (associate) Energototal (associate), which has won the sectoral acquisition contract for RON 1,208,285, VAT not included.
EBRD has invested in real estate developer CTP’s latest green bonds issue
The European Bank for Reconstruction and Development (EBRD) has invested EUR 42.5 million in the latest green bonds issue of real estate developer CTP, the largest owner of warehouses in Romania. In February, CTP issued the third tranche of green bonds, with a nominal value of EUR 500 million.
Catinvest is investing in new extension of Electroputere Mall in Craiova
Catinvest has obtained the necessary building permit to start works on a new extension of Electroputere Mall in Craiova. Starting from July, with a total investment estimated at EUR 6 million, Catinvest will develop an extension of the area allocated to restaurants in Electroputere Mall, thus adding 5 new restaurants, 3 of which will have private outdoor terraces, a new common outdoor terrace that can be shared by restaurants’ customers and an additional extension of the retail area by 5,500 square meters.
Legislative 
NBR Governor requests amendment to draft law banning pension and salary cumulation
NBR Governor Mugur Isărescu has sent to Parliament a request to amend the draft law banning public sector employees to simultaneously earn a pension and a salary. According to the Governor, the provisions of the draft law on some measures regarding persons who meet retirement conditions, in their current form, do not allow some of the members of the National Bank of Romania’s Board of Directors to continue their mandate, throughout its entire duration.
Yesterday, Chamber of Deputies adopted a draft law submitted by USR PLUS
Yesterday, the Chamber of Deputies adopted the draft law submitted by USR PLUS, which establishes that, in case of failure to fill school principal positions, interim principals should no longer be appointed by school inspectorates, but by the schools’ Boards of Directors. The draft law, initiated by USR PLUS senators Stefan Pălărie, Silvia Dinică and Darău Irineu, will now be sent to the Senate, for debates, and may be adopted by the end of the parliamentary session.
European News 
The European Commission laid out its vision for a Joint Cyber Unit
The European Commission laid out on Wednesday (23 June) its vision for a Joint Cyber Unit to tackle evolving cyberthreats and to increase European resilience. The Joint Cyber Unit will serve as a platform for cooperation for cybersecurity communities across the EU, enabling them to draw on each other’s support and to create a cybersecurity shield to detect cyberthreats before they can cause damage.
Social 
60,000 doses of Johnson&Johnson vaccine will get to Romania
The National Committee for the Coordination of Anti-Covid-19 Vaccination Activities (CNCAV) has announced that a new tranche of Johnson&Johnson vaccines, consisting of 60,000 doses, will get to Romania. The doses will be stored at the National Storage Center, and will be distributed to the existing regional centers at national level in the following period.