Daily Newsletter - 26 October 2020

The Economist: Romania's economy in better shape than others, but recovery will be slower in 2021 and 2022

Romania needs to invest in strategic sectors, such as healthcare, education and infrastructure, said Ramona Jurubita, president of the Foreign Investors Council (FIC).

The Economist: Romania's economy in better shape than others, but recovery will be slower in 2021 and 2022

Agriculture gets EUR 7.25 billion for two major projects

"The Romanian government and the prime minister have agreed to allocate EUR 7.25 billion to agriculture, through two major projects. A water management infrastructure project, worth EUR 6.5 billion, and a national network for collecting, storing and distributing Romanian products, worth EUR 750 million," said Minister Adrian Oros, in Cluj-Napoca.

PNDL project deadline extended

Prime Minister Ludovic Orban stated on Friday that the National Local Development Program 1 (PNDL 1) will be extended by one year in order to give the local authorities time to complete their projects. Otherwise, the local authorities would be forced to return the funds used for these projects. The PM added that the Cabinet is working on the third installment of PNDL.

Pension hike to keep Romania in recession in 2021

The budget deficit will reach 9% of GDP this year and any increase in fixed expenses (such as pensions) added to the consolidated budget, will compromise the expected economic recovery and throw Romania back into recession in 2021, some economists believe. Five economists published an open letter on Thursday stating that the budget has reached the spending limit some time ago and cannot afford a 40% increase in pensions.

Resident deposits up 1.9% in September

The deposits held by non-government resident clients reached RON 397.14 billion in September, up 1.9% compared to the previous month and up 14.7% on an annual basis, according to data released by the National Bank of Romania (BNR) on Friday.

Corporate borrowing surges to three-year high

Corporate borrowing increased sharply in September, reaching the highest growth rate in three years. Retail borrowing has also picked up the pace, driven mainly by the high demand for mortgages. After a spring affected by the COVID pandemic and the subsequent restrictions, June brought about a steady increase in borrowing.

ING Bank Romania launches two-factor authentication system

Online banking transactions will use a two-factor authentication system, except for small payments made to retailers and recurring transactions, according to Crina Nicolae, a director with ING Bank Romania. She told an online conference that the PSD2 directive brings many changes from the security point of view.

CTP invests EUR 50 million in park expansion

CTP, the largest developer and administrator of premium industrial and logistics parks in Romania and in Central and Eastern Europe, announced on Friday that it will double its leasable logistics space in Transylvania by 2023. The company will invest EUR 50 million in expanding its logistics parks around Timisoara.

Draft bill on packaging warranty-return system to be released soon

A draft bill setting up the guarantee-return system for beverage packaging would be released for public debate within a week, according to Mircea Fechet, secretary of state with the Ministry of Environment, Waters and Forests (MMAP). The guarantee-return system will involve charging the buyer a small amount when purchasing a product, which will be returned to the consumer when the packaging is recycled.

Grindeanu: We're putting forward a program focusing on job safety

Sorin Grindeanu, First Vice-President of the Social Democratic Party (PSD), said the party's platform focuses on job safety, featuring measures for young people and the disadvantaged, as well as measures designed to stimulate the birth rates.

Ludovic Orban: Four years of "political peace" will follow the election

The parliamentary election will be followed by four years of "political peace", according to Prime Minister Ludovic Orban. The PM added that Romania has the opportunity to become "some kind of Central and Eastern European tiger".

Cabinet to spend EUR 62 million on mobile medical units

The Cabinet adopted a memorandum allocating EUR 62 million to the creation of mobile medical units. Half of the funds will go to the General Emergency Situations Inspectorate (IGSU), while the other half will be used by emergency hospitals to set up mobile units.

Romanians pessimistic about economy and personal money

Most Romanians believe that the current economic situation of the country is very bad, and almost 40% say the same about the state of their personal finances, above the European Union average. Despite the pessimistic outlook and expectations regarding the situation of the economy, most Romanians say health is their main concern at the moment.