News

Daily Newsletter - 1 September 2020

Summary

Macroeconomic News (2)

RON 2 billion allocated for project preparation

The Cabinet approved on Monday the allocation of RON 2 billion for the preparation of projects for attracting European funds between 2021 and 2027. The sum will be reimbursed by the European Union, according to the Minister of European Funds, Marcel Bolos.

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Stimulus decree gets first Cabinet reading

The Cabinet is working on a decree featuring a system of profit tax bonuses for the companies that increase their own capital, according to Ionel Danca, head of the Prime Minister's Chancellery. The first reading was held on Monday and the Cabinet expects to adopt the decree later this week.

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Financial News (4)

Cemacon posts falling earnings

Cemacon Zalau, a producer of construction materials, posted RON 57.45 million in earnings from sales for the first half of this year, down 22.06% year-on-year. The company's EBITDA dropped 19.29% to RON 17.82 million. Cemacon is controlled by Dragos and Adrian Paval through Dedeman SRL and PIF Industrial.

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8 out of 10 companies think sustainability has long-term impact on operational performance

Most companies (80%) think that integrating sustainability in the decision making process has a long-term impact on operational performance, but almost half of them (49%) expect minor increases in sustainable investment, according to an EY study. 18% of respondents cannot say what would happen to this type of investment after the pandemic.

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Banks' profit margin climbed to 5.76 pp

Local banks reported for the first half of this year profit margins (the difference between the active interest rate for new RON-denominated loans and the passive interest rate on new RON-denominated deposits) ranging from 4.91 pp and 6.13 pp, down from the corresponding period of 2019.

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Argus Constanta saw 25% increase in earnings

Argus Constanta, a producer of vegetable oil controlled by SIF Oltenia, logged RON 3.91 million in earnings for the first six months of this year, a 25% increase compared to the corresponding period of 2019. At the same time, the company's turnover dropped 10% to RON 93 million.

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Investment News (2)

New highway contract to be signed in days

The Minister of Transport, Lucian Bode, announced on Monday that the contract for the Nusfalau - Suplacu de Barcau section of the Transylvania Highway (A3) will be signed with Nurol in a few days. The same Turkish company won the design and construction contract for two sections of the Bucharest Beltway.

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OMV Petrom bought Han-Asparuh stake

OMV Petrom has completed the acquisition of the 42.86% stake in the Han-Asparuh offshore field from OMV Offshore Bulgaria GmbH and OMV Exploration & Production GmbH. The acquisition price was not disclosed. Han-Asparuh is located close to the Neptun Deep field, which is leased by OMV and ExxonMobil.

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Politics (3)

President Iohannis appointed new climate adviser

President Klaus Iohannis appointed Alexandra Maria Bocse as the new climate and sustainability adviser, thus setting up a new department within the Presidential Administration. Bocse has seven years of experience in this field.

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PSD drops motion of censure

Alfred Simonis, leader of the Social Democratic (PSD) deputies, said on Monday that the party is no longer considering a vote on the motion of censure in the ordinary session, which begins today. The motion of censure was not voted on because the PSD failed to muster a quorum yesterday.

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IMAS poll: PSD falls to seven-month low

The Social Democratic Party (PSD) dropped to 20.8% in the latest IMAS poll, a seven-month low. The National Liberals (PNL) are treading water at 33.6%. The third place went to the USR-PLUS alliance, with 18.3% of the vote intentions, a slight increase from July.

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Social (1)

55% of parents want children to attend in person

Most Romanian parents would rather see children attending school physically, according to a survey conducted by market research firm MKOR Consulting for the Ministry of Education. This is especially true for preschoolers and high school students.

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