News

Daily Newsletter - 1 July 2020

Summary

FIC (1)

10 steps toward business #reinvention

Ramona Jurubita, FIC President - Focus on education - My message is to remember education because we see education in everything we do, we see it in the reaction on social media channels, we see it in the way we position ourselves compared to other states, we see it in the competitiveness that our companies have compared to other states. It is a message that we must all continue to promote on every occasion in our talks with public authorities: this sector must be considered strategic in terms of the development of this country.

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Macroeconomic News (4)

Almost 30% of SMEs expect to return to

Almost 30% of the small and medium-sized enterprises operating in Romania say they expect to return to the previous year's turnover by the end of 2020, according to a survey conducted by the National Council of Small and Medium-sized Private Enterprises in Romania (CNIPMMR). 16.98% of SMEs say they are already at the same turnover level as in the corresponding period of 2019.

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Romania has massive offshore wind potential

Romania has a huge potential for offshore wind energy - more than 70,000 MW - and could reach Great Britain's output in the next five years, according to Niculae Havrilet, Secretary of State with the Ministry of Economy. Havrilet added that Romania could become a net electricity exporter by 2025.

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Confidence in economy grows

The economic confidence indicators published by the European Commission moved up in June, with Romania's figures exceeding the European average. On the other hand, Romanian managers expect economic activity to increase in July and August, except for the service sector, which will see worsening unemployment, according to a survey conducted by the National Statistics Institute (INS).

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Ministry of Economy approves export promotion programs

The Ministry of Economy announced on Tuesday the approval of the minimis schemes for promoting the export of Romanian goods and services. The total budget for this year's Export Promotion Program is RON 50 million. "The three adopted schemes were designed after consultations with the business community, so that they answer as well as they can to the current needs of companies. We want the promotion of Romanian goods and services to be adapted to the current economic reality and lead to an increase in the real value of exports and a diversification of their structure," declared Minister Virgil Popescu.

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Financial News (4)

New unsecured consumer loans reached RON 15.4 billion

The value of unsecured consumer loans showed solid growth, rising to an 11-year high in 2019, according to the National Bank of Romania (BNR). The exposures of unsecured consumer loans continued to fall in 2019, dropping 10.9% from 2018.

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IRCC down

The Consumer Credit Reference Index (IRCC) dropped to 2.41% per year, down from 2.44% per year, according to the National Bank of Romania (BNR). The reference index is calculated at the end of each quarter as the average of the daily interest rates from the previous quarter.

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ING Bank brings back 15% down payment for mortgages

ING Bank reduced the minimum down payment for mortgage loans from 25% to 15%, after having increased it to 35% during the COVID-19 crisis. The Dutch bank announced interest rate cuts for people who can afford to put more money into buying a property. In March, the fourth largest bank by assets increased the minimum down payment for mortgages from 15% to 35%. In May, the minimum capital contribution from the client was reduced to 25%.

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National banking system's ROE almost twice higher compared to EU

The national banking system posted a 10.87% return on equity, compared to the European Union's 5.8% average, according to the stability report released by the National Bank of Romania (BNR). However, the cost to revenues ratio is reaching alert levels in Romania, too, which indicates that the system needs restructuring.

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Investment News (2)

Alro invested more than USD 700 million in the past 18 years

Alro has invested more than USD 700 million since its privatization in 2002. The company has a turnover of more than USD 600 million, according to a press release sent to the Bucharest Stock Exchange (BVB). Alro is one of the biggest vertically-integrated aluminium producers in Europe.

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E.ON invested EUR 1.7 billion in Romania in the past 15 years

German group E.ON invested EUR 1.7 billion in Romania in the past 15 years, modernizing distribution networks and developing energy solutions. The group modernized 8,290 kilometers of natural gas pipes, as well as 6,450 kilometers of power grid.

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Legislative News (1)

Parliament takes over energy policy

The Chamber of Deputies passed the proposal put forward by the Industry and Services Commission to amend the Energy Law in order to have the National Energy Strategy (SEN) adopted by the Cabinet and approved by the Parliament, which gives Parliament the final word on the strategy.

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Politics (1)

PNL moves up to 33% in new poll

The National Liberal Party (PNL) moved up slightly in a new poll regarding the upcoming parliament election, rising from 32.6% in May to 33% in June. The Social Democrats (PSD) fell 1.1 pp from May's 33%.

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Social (1)

Baccalaureate 2020

155,639 high school graduates enrolled in the Baccalaureate this year. 147,790 actually took the exams and 92,930 passed (62.9%). This is the lowest percentage in six years.

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