News

Daily Newsletter - 22 January 2021

Summary

Macroeconomic News (3)

Romania will receive EUR 100 billion in EU funds from the 2021-2027 budget

Romania will receive a total of EUR 100 billion in European funding from the 2021-2027 budget, three times more compared to the previous budget. Agriculture and sustainable development programs represent a third of the available funding, according to an analysis from REI Finance Advisors, a consulting company that specializes in attracting European funds and state aid.

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Two thirds of companies want to apply fiscal incentive for teleworking employees

Two thirds of the respondents to a survey organized by PwC Romania among representatives of the business environment claim that they will apply the telework fiscal incentive that was recently added to the Tax Code. Only 8% of participants said the changes are not useful to them, while 38% are still analyzing the new regulations.

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Public debt is 44.4% of GDP

Romania's public debt stood at RON 463.963 billion at the end of November, 2020, the equivalent of 44.4% of GDP, compared to RON 373.6 billion (35.3% of GDP) at the end of 2019, according to data centralized by the Ministry of Finance. The short-term debt is RON 16.42 billion, with the rest being medium and long-term debt.

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Financial News (3)

BNR tells banks to skip dividends

The National Bank of Romania (BNR) has again advised the local commercial banks to refrain from paying dividends until September 30, 2021. However, if lenders, including those listed on the stock market, are profitable and choose to remunerate their investors, they will have to consult the National Bank before making any decision.

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Miruna Enache: Cryptocurrencies will soon be decrypted

In November 2020, the European Commission launched the initiative to regulate cryptocurrencies and e-money - DAC 8, according to Miruna Enache, partner, leader of the transaction tax assistance division at EY Romania. "The cryptocurrencies will be decrypted in a short time, and we, in Romania, will have yet another type of report to ANAF that we will have to take into account," said Enache during an online conference.

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32% of Romanians sure banks will continue digitization

32% of Romanians are sure that banks will continue to digitize in the next 12 months. However, a third of Romanians said they do not expect this to happen at all, while 35% of respondents are still not fully convinced of the digitization of banks. Romanians living in urban areas are largely convinced of this change in banking services.

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Investment News (1)

Impro to invest RON 10 million in local plants

Impro, a manufacturer of roofs and thermal insulation panels owned by the namesake Polish group, will invest RON 10 million this year in the two factories it operates in Romania. "This year we will invest heavily in both the panel and industrial corrugated sheets factory in Timisoara, as well as in the metal tiles and corrugated sheets factory in Cluj. The investment will amount to over RON 10 million. We want to increase our market share this year by diversifying the offer and by launching new technological solutions in roofing," said CEO Mircea Pasenciuc.

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Politics (1)

Dancila: I regret having supported Ciolacu for Chamber president

Former Prime Minister and PSD President Viorica Dancila accused the current leader of the Social Democrats, Marcel Ciolacu, of having betrayed her, expressing regret that she had supported him for the position of President of the Chamber of Deputies.

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Social (2)

Ministry of Labor begins evaluating social assistance

The Minister of Labor, Raluca Turcan, announced that the ministry is preparing a national campaign to evaluate social assistance. The purpose of this campaign is to identify which beneficiaries are in "genuinely vulnerable" situations.

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Census postponed for one year

At the beginning of the year, it was announced that the population census scheduled for 2021 would be postponed by one year due to the pandemic. The authorities have decided that it is better if the census does not take place this year, because many people are self-isolating or quarantined and the census workers could easily get sick. A "trial" census will take place between February 1 and March 31, 2021.

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