News

Daily Newsletter - 13 August 2020

Summary

FIC (1)

Ramona Jurubita, FIC President and Country Managing Partner KPMG Romania: Investment in education for a high-performance economy

"Even though in these moments of crisis, the state's reaction is limited, it is important to remember education, because education reflects in everything we do, especially in the competitiveness of our companies", said Ramona Jurubita, FIC President and Country Managing Partner KPMG Romania.

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Macroeconomic News (4)

June data offer glimmer of hope

April and June were the peak of the pandemic, when the country was placed under states of emergency and alert and most of the economy was partially closed. Initial estimates of the economic downturn were dramatic, going as high as -15%. Today, analysts are more optimistic about the situation, with the first economic results for this period indicating that, while the COVID-19 pandemic has hit hard, the economy has - surprisingly - had the means to withstand the blow.

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Public debt passed 40% of GDP in June

Romania's public debt reached 40.2% of the GDP in June, up from 39.9% in May, according to information released by the Ministry of Finance. The public administration's debt amounted to RON 430.8 billion at the end of June. The Fiscal Council has repeatedly warned that EU reports describe Romania's public debt risk as "high".

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Inflation rate climbed to 2.8% in July

Consumer prices jumped 2.8% in July, compared to the corresponding month of 2019, according to data released by the National Statistics Institute (INS) in Wednesday. Food prices surged 5.57%, while services became 3% more expensive.

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Industry showed strong recovery in June

Industrial production continued to recover in June, growing 16.2% from the previous month. The industrial sector was strongly affected by the COVID-19 pandemic, which sent foreign demand into a tailspin. Manufacturing, the most important component of the national industry, surged 21.6% in June.

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Financial News (3)

CC worried about CIT One transaction

The Competition Council announced on Wednesday that it would release for public debate the pledges offered by BRD, Raiffeisen Bank and BCR to become shareholders of CIT One, a provider of integrated cash management services. The competition watchdog voiced its concern with the possibility of sensitive information being shared among the company's new shareholders.

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Raiffeisen Bank earnings down

Raiffeisen Bank ended the first half of this year with RON 280 million in earnings, down from the corresponding period of 2019, according to a bank press release. Raiffeisen Bank's total assets reached RON 46.1 billion (up 7% year-on-year). The lending business continued to grow, with the balance of loans granted to bank customers reaching RON 28.5 billion.

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UniCredit wants to boost mobile app usage

UniCredit Bank continues the digitization process with the launching of a new version of its mobile application for business clients. The application allows SME clients to access information and make essential operations by phone. The bank aims to increase the use rate for its application from 30% to 50% by the end of the year.

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Investment News (2)

Henri Coanda Airport begins modernization works

The National Bucharest Airports Company (CNAB) announced that it had started the modernization of the second runway at the Henri Coanda International Airport (HCIA). The project worth RON 109.68 million was granted to Porr Construct SRL.

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Teraplast gets EUR 1.2 million for former plant site

Teraplast, a producer of construction materials, has inked a partnership with real estate developer Alfa Construct Partners to build a residential ensemble in Bistrita, at the site of a former Teraplast plant. The producer will provide the location, while the developer will finance the construction work.

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Politics (2)

PM Orban praises cooperation with USR-PLUS

Prime Minister Ludovic Orban attended yesterday evening the launching of Cristian Bacanu's mayoral run for Bucharest's Fifth District. The PM said the National Liberals (PNL) and USR-PLUS had formed a true team of people determined to change things for the better in the city.

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PSD to file motion of censure on August 17

Marcel Ciolacu, interim leader of the Social Democratic Party (PSD) and president of the Chamber of Deputies, announced that PSD would file its motion of censure against the Cabinet on August 17. Ciolacu called Romania "a country adrift" headed by a "zero credibility" Cabinet.

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Social (2)

Students will not have their temperature checked by schools

The Ministry of Health has dropped the idea of having schools check the temperature of students upon coming to school on grounds that the procedure would cause crowds to form at access points. Instead, the parents have to check their children's temperature every morning.

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One Romanian in three would rest more if the day were 26 hours long

Three out of ten Romanians consider that they have more spare time than before the COVID-19 pandemic. However, if every day had two extra hours, four out of ten Romanians would like to sleep more, according to a study by ING Bank, published during the launching of the new brand direction. The results of the survey also highlight the fact that, for half of the respondents, hobbies are an opportunity to socialize and feel included in the community.

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