News

Daily Newsletter - 1 February 2021

Summary

FIC (1)

Foreign investment in the last decade

The North-West region, which includes Cluj, accounted for 3.9% in 2009, 5.9% in 2015 and 5.7% of the total in 2018, according to a report by the Foreign Investors' Council (FIC). Between 2009 and 2018, the North-West, Center, West and North-East regions reported gains in their share of foreign investment, while Bucharest-Ilfov, South-East, South-Muntenia and South-West Oltenia lost ground.

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Macroeconomic News (3)

AAC calls for emergency compensation

The Agriculture and Cooperation Alliance (AAC) has warned about the need to adopt the consolidated state budget, including the budget requested by the Ministry of Agriculture and Rural Development, which features the sums needed to make payments for the spring crops that were affected by the 2020 drought. The working capital needed to resume the production cycle cannot be secured without rapid support measures, respectively compensation for the spring crops destroyed by the drought.

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Romanian economy will recover up to 3.5% in 2021

Although 2020 promises to be a fateful year for the local economy, the number of insolvencies, suspensions, and dissolutions of companies was much lower compared to 2019. Thus, Romanian managers preferred to change their business models, instead of closing their business, but they also relied on tax breaks from the authorities.

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Insolvencies down in 2021

Tax breaks and the closing of courts by the pandemic have reduced by 42% (from 139 in 2019 to 80 in 2020) the number of companies filing for insolvency. However, the economic impact of insolvency and restructuring projects has been growing: the value of these companies' assets is EUR 1.5 billion, up 28% compared to 2019, while the total number of affected jobs is 11,717, according to a CITR analysis.

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Financial News (2)

ARB recommends proactive analysis of repayment capacity

Romanian banks are continuing to absorb the liquidity problems faced by the debtor population and companies whose revenues have been directly or indirectly affected by the serious situation generated by the COVID-19 pandemic, in a joint effort with state authorities, by extending the payment moratorium. The Romanian Banking Association (ARB) advised customers to proactively analyze both their current and post-moratorium repayment capacity and, depending on the result of the analysis, to decide whether to apply for installment deferrals.

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Deposits surged to almost RON 421 billion in 2020

The volume of retail and corporate deposits grew by 13.4% on average in 2020, reaching a total of RON 420.8 billion at the end of last year, according to BNR. The commercial banks have been forced in recent years to rely on local sources of funding, as they lost some of the funding provided by parent banks.

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Investment News (1)

Hidroelectrica to invest more than RON 170 million in Bradisor retooling

Hidroelectrica, one of the largest energy producers in the country, wants to invest RON 170.37 million in the retooling of the Bradisor hydropower plant. The project will be submitted for approval at the Extraordinary General Meeting of Shareholders of March 4. The purpose of the retooling is to keep the plant operating safely for a 30-year cycle, as well as increasing the yield by about 2% compared to the initial project.

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Legislative News (1)

MTPL regulations change

The draft decree amending the MTPL regulations, which makes the direct settlement clause mandatory for MTPL policies, stipulates that the insurers must pay compensation within 10 days of notification. Severe penalties were added to the bill in case of payment problems, according to the draft published on the website of the Ministry of Finance.

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Politics (2)

AUR deputy blasts budget project

Dan Tanasa, a deputy belonging to the Romanian Unity Alliance (AUR), said at a press conference held on Friday that the draft budget was designed to "impoverish" Romanians.

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Vlad Voiculescu dismisses PSD criticism

Vlad Voiculescu, the Minister of Health, said the Social Democrats' calls for his resignation in the wake of the "Matei Bals" fire are "interesting". Voiculescu noted that the hospital's heating problems were the result of Gabriela Firea's (PSD) four years as mayor, while any investment problems are the responsibility of Senator Cercel (PSD), who ran the hospital for 28 years.

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Social (1)

28% of hospitals lack water tanks for fires

After last year's Piatra Neamt County Hospital tragedy, where 12 ICU patients died in a fire, the State Sanitary Inspection (ISS) was sent to inspect the ICU departments of all public and private hospitals in the country. The inspections were launched on November 17, with partial results being publicly announced on December 14, 2020.

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