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Daily Newsletter - 10 March 2021

Summary

FIC Daily Newsletter | 10.03.2021
FIC (0) || Macroeconomic (3) || Financial (3) || Investment (3) || Legislative (2) || European News (1) || Social (2)
Banca Transilvania estimates GDP growth towards 5% this year
Banca Transilvania expects a V-shaped recovery of Romanian economy and GDP growth towards 5% in 2021, according to an analysis signed by Andrei Rădulescu, Macroeconomic Research Director at Banca Transilvania. This scenario is based on the favorable conditions for the dynamics of productive investments (supported by the low level of real financing costs, by the positive climate in the financial-banking sector and the prospective implementation of programs launched by the European Union last year), which could pull along the other components of the Gross Domestic Product.
INS has revised downwards the economic growth data for Q4/2020
The National Institute of Statistics (INS) has revised downwards the economic growth data for Q4/2020, from 5.3% to 4.8%, but has maintained its estimate according to which Romania’s GDP only decreased by 3.9% in 2020 compared to 2019. The evolution is better than the one recorded by the Eurozone, the main economic partner, where the annual decline was of 6.8%. Most economic sectors contributed to the GDP decline in 2020, but industry had a more significant negative contribution.
Romania recorded the highest economic growth rate in EU in Q4/2020
Romanian economy grew by 4.8% in Q4 of 2020 compared to Q3 of the same year. This was the highest GDP growth rate recorded by a European Union member state in the fourth quarter compared to the previous quarter, according to data published by Eurostat yesterday. On the other hand, Eurozone economy contracted by 0.7% and EU’s GDP decreased by 0.5% in Q4 of last year compared to the third quarter.
Balance of deposits recorded significant increases in most counties at the end of 2020
Tulcea County, which had, at the end of 2020, a relatively low balance of RON and foreign currency-denominated corporate and retail deposits, of RON 1.65 billion, recorded the highest growth rate, of about 37.3%, compared to the balance at the end of 2019, according to NBR data. Tulcea County’s aforementioned balance of deposits represents about 0.65% of the total balance of deposits recorded at the end of 2020, of RON 256.22 billion.
Netopia reports a 60% increase in the volume of payments by card in 2020
NETOPIA Payments, the most extensively used electronic payments processor in Romania, has reported a 60% increase in the total processed volume following transactions by card in 2020, compared to the previous year. According to the presented data, the number of online transactions by card grew by about 20% in 2020, considering that the average value of the transaction rose to RON 215, from RON 165 in 2019.
Banca Transilvania to repurchase maximum 35 million own shares
Starting today until 19 November 2021, Banca Transilvania (TLV) is to repurchase maximum 35 million own shares, the equivalent of 0.67% of the company, according to the shareholders’ decision at the end of April 2020, according to the credit institution’s report published on Bucharest Stock Exchange (BSE)’s website. The repurchases will be made at the market price, which cannot be higher than RON 4/share. The repurchased shares will be used within a “stock option plan” program.
Amazon is expanding in Romania
Amazon, the operator of the biggest online shopping portal in the world, is preparing to add another 500 permanent positions in its offices in the country by the end of the year and intends to open a new office in Timişoara and two more in Iaşi. The company’s team in Romania has reached over 2,500 employees. The office in Timişoara will focus on the Amazon Devices line, which will include Ring security devices as well, and will be the place where new products and services will be developed and launched.
Korean brand Mumuso has got to four stores in Romania
Korean brand Mumuso has got to four stores in Romania after having opened a new unit in Park Lake shopping center in Bucharest. According to its website, the company also has stores in Auchan Militari, DN1 Value Center and Dâmboviţa Mall. The stores opened by the Mumuso brand are similar to those operated by the Japanese-Chinese company Miniso, having a close offer of products and a low price policy.
Pantiş family to invest EUR 9 million in the development of Optimedia doors and windows factory in Oradea
PVC and aluminum windows and doors manufacturer Optimedia, owned by Romanian entrepreneurs Marius and Simona Pantiş, has a EUR 9 million investment budget for the development of the factory in Oradea. In 2020, Optimedia finalized EUR 1.5 million investments, which consisted in increasing the aluminum windows production unit by 2,000 square meters and in increasing the PVC windows production capacity.
The Ordinance regarding flexible working time will be amended
The Ordinance modifying the flexible working time (Kurzarbeit), which allows reducing working hours by up to 80%, is to be amended again, including by compelling employers to obtain employees’ consent for this reduction. Moreover, several other changes will be made to the program, related to the way payments to employees are granted and settled, as well as to recruitments allowed during the program implementation period.
Senate rejected draft law banning magistrates to collaborate with intelligence services
Yesterday, the Senate rejected, as a decision-making body, the legislative proposal to amend Law 303/2004 regarding judges and prosecutors’ statute, which established magistrates’ obligation not to collaborate with intelligence services based on secret documents. There were 72 votes in favor and 61 votes against the rejection report.
Pandemic sends almost half EU employees into remote working
The Covid-19 pandemic has meant that almost half of the working population in the European Union (EU) were fully or partially working remotely in July, up from around 10% before the pandemic crisis, according to Eurofound. This new labour reality, accelerated by the pandemic, will be under discussion on Tuesday at a high-level conference on the future of work entitled “Remote Working: Challenges, Risks and Opportunities” held remotely as part of the Portuguese presidency of the Council of the EU.
Romania will receive nearly 6 million doses of anti-Covid-19 vaccine in March and April
According to the delivery schedule, 2.6 million doses of anti-COVID-19 vaccine will arrive in Romania in March, and at least 3,128,000 doses in April, the Secretary of State in the Ministry of Health Andrei Baciu has announced. He has added that in case Johnson&Johnson receives a positive recommendation as well, the doses that this company will send will add to the aforementioned numbers.