Daily Newsletter - 10 November 2020


Macroeconomic News (4)

EU fund absorption rate reached 38.9%

The value of European funds absorbed by Romania reached EUR 8.8 billion, out of a total of EUR 22.5 billion allocated under the cohesion policy for the 2014-2021 period, the equivalent of an absorption rate of 38.9%, the Minister of European Funds said on Monday. The Ministry manages all the funds allocated to Romania through the Cohesion Funds, the European Social Fund and the Regional Development Fund.


Florin Citu: Economy to drop 4%

The Romanian economy will contract 4%, +/-0.2 pp, according to the Minister of Finance, Florin Citu. While the Ministry of Finance is taking into account a contraction of up to 6%, the Minister ruled out any agreement with the International Monetary Fund and indicated that Romania has no financing problems.


HR sector turnover close to RON 4 billion turnover

Companies recruiting temp workers had the biggest contribution to the HR sector's turnover. Their combined turnovers soared eleven-fold between 2008 and 2019. The entire HR sector's turnover came close to RON 4 billion in 2019, a four-fold increase from 2008, according to ONRC data.


Exports down 13.6%

Romania's exports amounted to EUR 44.81 billion in the first nine months of this year, down 13.6% compared to the corresponding period of 2019, while imports fell 9.5% to EUR 57.86 billion, according to the National Statistics Institute (INS). The trade deficit was EUR 13.05 billion, up almost EUR 1 billion on the year.


Financial News (4)

Pros and cons of Revolut's Libra IBAN accounts

Opening RON-denominated, IBAN carrying accounts with Libra Bank for Revolut cards has at least to positive aspects, as well as a negative one: the transfer fees are halved, while the tax authorities cannot look into the finances of Revolut clients, but the accounts belong to Revolut, not to the clients. The amounts deposited in these accounts are not guaranteed by the FGDB.


BCR lands Metrorex contract again

BCR won the Metrorex contract to provide contactless card payment services at the turnstiles of subway stations, as well as POS services at cash registers and card dispensers, and the online payment of tickets loaded on contactless cards. The four-year contract was awarded for RON 1.8 million. This is the second time BCR lands the Metrorex contract.


BNR bought no state bonds in October

The National Bank of Romania (BNR) did not venture into the secondary market to buy bonds in October, according to the statistics figures published on Friday. This indicates that the banking market's liquidity situation was very good. October was the second month in the last seven when BNR did not print money by buying bonds in the secondary market.


Consumer loan demand rises

New RON-denominated consumer loans passed RON 1.89 billion in September, down only 0.7% compared to the corresponding month of 2019. On the other hand, the overall figure for the first nine months of this year is 17.5% lower compared to 2019.


Legislative News (1)

Electricity supply safety bill signed

President Klaus Iohannis signed into law a bill featuring electricity supply safety measures.


Politics (2)

Ciolos says PNL cooperation is not given

Dacian Ciolos, co-president of USR PLUS, said on Monday that he would not rule out governing with the National Liberals (PNL), but "it's not a given". Any cooperation should be based on a "platform" and "clear goals", noted Ciolos.


PM Orban rejects PSD criticism

PM Ludovic Orban said the Social Democrats (PSD) should not be talking about what the National Liberals (PNL) will do. Orban added that the PSD has been spending recklessly for the past 7 years and is now lying that PNL won't pay farmers and teachers.


Social (1)

Inspectorates and schools must provide "education resources" to students who lack tablets

The county school inspectorates and the schools must provide education resources to students lacking devices or internet access in order to make sure they can attend online classes, according to an order issued by the Minister of Education.