News

Daily Newsletter - 10 February 2020

Summary

FIC (1)

15 private organizations unveil urgent project list

The construction of the Sibiu-Pitesti highway, the Moldova-Transilvania highways, as well as the Craiova-Pitesti expressway and the link between the Otopeni Airport and the Bucharest-Ploiesti highway are the top priority infrastructure projects that the state should implement in order to stimulate economic activity and investment. The list of priority projects, drafted by 15 organizations representing the business community, also includes a series of road, rail, port and airport infrastructure projects. Among the 15 organizations are FIC, AmCham, AHK, the French, Austrian, Dutch and Belgian chambers of commerce, Concordia, RBL, ACAROM,TIAD, CONPIROM, CDR, and AOAR.

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Macroeconomic News (2)

AFIR paid out EUR 56 million in January

The Rural Investment Financing Agency (AFIR) authorized and paid out EUR 56.2 million to farmers, entrepreneurs and public authorities in January, with the European Union's contribution amounting to EUR 48.07 million. The payments went to agriculture investment projects made by beneficiaries under the 2014-2020 National Rural Development Plan (PNDR).

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IT&C spending remains high

IT&C spending in Central and Eastern Europe is expected to increase by 3.1% this year, compared to 2019, according to the latest report from the International Data Corporation. Romania posted USD 6.6 billion in IT&C investment for the first half of 2019, the fifth best figure in the region.

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Financial News (4)

Banca Transilvania climbed 100 places in Brand Finance Banking

Banca Transilvania reached number 339 in the Brand Finance Banking index, up 100 places. The bank's brand value jumped 53% to USD 370 million, thanks to both organic growth and the acquisition of Bancpost. Compared to the previous year, the bank has one of the world's ten fastest growth rates for brand value and strength.

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BNR protects currency

The National Bank of Romania's (BNR) Board of Directors decided at Friday's meeting to maintain the monetary policy rate at 2.5% per year. The central bank also decided to reduce from 8% to 6% the minimum provisions set up by lenders for their foreign currency liabilities, thus releasing more than half a billion euros on the market.

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BNR board approves inflation report

The CPI inflation rate reached 4% in December, 2019, up from 3.8% in November, thus exceeding the stationary target range and beating the forecast slightly. The increase was seen as a result of rising fuel prices, a surge in fruit prices, and the acceleration of the base inflation rate.

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BNR governor explains RON appreciation

"The RON has risen recently because an important seller sold larger amounts of foreign currency, which led to the strengthening of the national currency. Everyone wants to make more money, but it did not work out. The seller sold more foreign currency and pushed the exchange rate up," said Mugur Isarescu, Governor of the National Bank of Romania (BNR). Isarescu added that the national foreign exchange market is not "very deep" and that any investor that throws EUR 100-200 million on the market can influence the exchange rate.

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Investment News (2)

De'Longhi buys new local plant

Italian group De'Longhi announced the acquisition of a new plant, located in Madaras, Bihor county, where it will hire 500 workers. The plant has a 25,000 sqm footprint and some of the existing equipment will be used in the future manufacturing activity.

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Cluj-Napoca City Hall launches auction

The Cluj-Napoca City Hall has launched an auction for building construction and operation contracts worth up to EUR 300 million. The bidders can build either four-star hotels of up to 200 rooms or office buildings and related services.

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Legislative News (2)

Two more decrees published in Official Monitor

Two more of the 25 decrees issued by the former Orban Cabinet last Tuesday evening were published in the Official Monitor, along with the public-private partnership decree adopted on January 28.

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Healthcare decree lacked Legislative Council approval

The decree that opened the state healthcare programs to private clinics, including emergency services, cannot come into force because it lacks the Legislative Council's approval.

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Politics (2)

Orban to unveil new cabinet and updated platform on Monday

Prime minister-designate Ludovic Orban announced that he would present the Parliament with the new list of ministers and the updated government program on Monday, after the National Liberal Party's (PNL) Political Bureau meeting.

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USR picks ideological lane

The political ideology referendum conducted by the Save Romania Union (USR) ended with a majority vote in favor of adopting a center-right position, according to a press release. 91.25% of the members who voterd supported the center-right proposal.

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Social (1)

Half of Romania's youth planning to leave country

"We know from surveys that about half of all young people between the ages of 16 and 34 have plans to leave the country, firm plans. [...] The percentage of college students who intend to leave is very close to 47% - 48% of the total. Moreover, these intentions are better structured in the case of those who are at the bachelor's degree, master's or doctorate stage, given that those who had planned to leave have already left," according to sociologist Dumitru Sandu.

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