News

Daily Newsletter - 1 October 2020

Summary

Macroeconomic News (4)

Citu: We're not raising taxes

The goal is to reach a stable outlook for the economy, according to Florin Citu, the Minister of Finance, who expects S&P to confirm Romania's rating in December. The minister assured the public that taxes and interest rates would not go up.

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FDI flow down 1.76% last year

The net flow of foreign direct investment was EUR 5.17 billion last year, down 1.76% compared to 2018, according to a press release issued by the National Bank of Romania (BNR). Equity investment amounted to EUR 5.02 billion, including EUR 2.2 billion worth of reinvested profits.

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Confidence in Romania's economy up

Confidence in Romania's economy continued to grow in September for the fifth consecutive month, moving up 2.2 points to a total of 88.8 points, the highest figure since March, according to indicators released by the European Commission yesterday. The Commission's ESI aggregate indicator has thus recovered more than half of the decline it suffered in March and April, but the pace of recovery of confidence in the Romanian economy is slowing and has not returned to pre-lockdown levels.

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S&P Global Ratings: Romania's budget deficit will be 10% in next three years

S&P Global Ratings expects Romania's budget deficit to exceed 10% of the GDP in 2021 and remain at that level in the 2022 and 2023, following the 40% increase in pensions, as well as other public expenses. The agency thinks the Romanian Government will "use every tool at its disposal to fight or temperate the measure," according to a note published on Tuesday evening.

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Financial News (3)

Idea Bank doubled earnings in H1, 2020

Idea Bank, a lender owned by Polish group Getin Holding, reported RON 55.8 million in operating revenues for the first half of this year, up 11.7% year-on-year, and RON 5.6 million in earnings, almost twice higher compared to the corresponding period of 2019, according to the financial report sent to the Bucharest Stock Exchange (BVB).

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Interest rates begin falling

The National Bank of Romania (BNR) announced that the new value of the IRCC reference rate is 2.17%, based on the real interest rates of Q2, 2020, down from 2.41%. Nevertheless, the IRCC remains above the three-month ROBOR rate, which is currently rising. Romanians who took out loans after May, 2019, will pay lower installments in the next three months.

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Raiffeisen Bank finances 11 education projects

Raiffeisen Bank will provide RON 500,000 in financing for the 1 non-formal education projects that qualified for grants at the tenth Raiffeisen Comunitati program. A total of 20 projects made this year's final round, according to the bank's representatives.

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Investment News (1)

Ministry of Environment invested RON 2 million in barn waste platform

The Ministry of Environment, Waters and Forests (MMAP) has completed an investment project worth more than RON 2 million for the construction of a barn waste platform in Comarna, Iasi county. The platform's storage capacity is 2,200 cubic meters per year. The project known as Nutrient Pollution Integrated Control was financed through a World Bank loan.

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Legislative News (1)

Bill could give employees share of profits

The Parliament is considering a bill stipulating that companies must share some of their earnings with their employees. According to the bill, employees must be paid at least 7.5% of a company's earnings as a loyalty method. The National Bank of Romania (BNR) has been doing this for some years.

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Politics (2)

President Iohannis: I see no reason to delay the parliament election

President Klaus Iohannis said he saw no reason to postpone the upcoming parliament election because it would make it impossible to pass the necessary laws in this difficult context. The president described the proposals to postpone the election as "the pathetic attempt of some politicians who will not enter the next parliament to enjoy their pay for a few extra months".

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PSD: EC's rule of law report is a red card for President Iohannis

The Social Democratic Party (PSD) stated that the European Commission's report on the rule of law is a red card for President Klaus Iohannis, "who was unable to take any action in this matter in the past months". The PSD also warned the president that "the judiciary laws should not be discussed at PNL's campaign headquarters, but transparently, involving the civil society".

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Social (1)

Romania ranks last in EU life expectancy index

The life expectancy of a newborn in the EU was 81 years in 2018, with a gender difference of 5.5 years in favor of women (83.7%) compared to men (78.2 years). The ten regions with the highest life expectancy were located in Spain, Italy and France. Four decades ago, Romania had a better life expectancy than the Czech Republic and Hungary.

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