News

Daily Newsletter - 24 September 2019

Summary

Macroeconomic News (3)

Most Romanian SMEs sinking deeper into financial problems

Sierra Quadrant analysts have warned in a brief report that many Romanian SMEs are sinking under the weight of financial difficulties, due to the financial blockage, the lack of financing and predictable business plans. More and more companies end up defaulting because they lack the capital needed to stay afloat until they get paid. The BNR data used by Sierra Quadrant indicated that payment delays have increased significantly since the beginning of the year.

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Romania has third highest trade surplus with Africa in EU

23 members of the European Union reported trade surpluses with Africa last year, with the top three being Belgium (EUR 3.8 billion), Germany (EUR 3.7 billion) and Romania (more than EUR 1.7 billion), according to data released by Eurostat on Monday. In 2018, Romania exported goods and services worth EUR 2.29 billion to Africa, while imports amounted to EUR 585 million.

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Automotive industry exports shrink

"Romania's automotive industry is 14% of the GDP and 26% of exports. It's the biggest industry in Romania, one of the country's main economic drives. We must see it as a gold nugget, maintain it and expand it," said Christophe Dridi, CEO of Automobile Dacia and Groupe Renault Romania, at a press conference held this summer.

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Financial News (3)

BNR launched FinTech Innovation Hub

The National Bank of Romania (BNR) has launched the FinTech Innovation Hub project, a platform for companies developing public interest solutions for payment and financial services. BNR stressed the fact that it supports innovation in payment services, albeit "controlled and to the consumers' advantage".

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Nonresidents' banking deposits at new low

The long-term deposits opened by nonresidents in local banks, mainly financing lines granted by shareholders, continued to fall in the first seven months of this year. The aggregated value of these deposits fell almost EUR 1.6 billion to a new low of EUR 660 million.

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Senator Zamfir submits new bills

Senator Daniel Zamfir (ALDE) is once again trying to use the law to cap the interest rates of loans, convert loans to the national currency, slow down foreclosures and cap the amounts that debt collectors can collect.

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Investment News (1)

Forte Partners spends EUR 100 million on two office projects

Forte Partners has started building the Matei Millo project, located on Bucharest's Victoriei Road, close to the iconic Palatul Telefoanelor. The project is estimated at EUR 40 million. The company is also investing EUR 65 million in Tandem, a second office building.

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Legislative News (1)

Senate allows tourism bill to pass

The Senate allowed the Tourism Act to pass on Monday, without debating the main bill. Plenum debate focused on an amendment proposed by UDMR, which would impose a new tax for the purposes of tourism promotion. The Minister of Tourism opposed the tax. Senator Lorant Antal (UDMR) put forward the idea of establishing destination management organizations in counties that hold important tourism assets.

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Politics (2)

Victor Ponta's MPs signed motion of censure

The opposition parties could file the motion of censure at the beginning of next week, according to political sources. Leaders of the National Liberal Party (PNL) floated September 30 as a possible filing date. "We are getting closer to the 233 signatures we need," said the sources.

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Tariceanu pledges support for motion of censure

Calin Popescu Tariceanu said the 20 MPs belonging to ALDE have either signed or are about to sign the motion of censure, adding that any MP who opposes the party's will would have his or her membership revoked. ALDE's Executive Political Bureau (BPE) voted in favor of supporting the majority on Monday.

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Social (1)

Ministry of Health to launch vaccination campaign

The Ministry of Health announced the launching of the free vaccination campaign for the 2019-2020 flu season. The authorities bought 1.5 million shots, around 200,000 more than last year. The first 50,000 shots have already been distributed to county units and will be used to vaccinate the medical personnel.

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