News

Daily Newsletter - 11 March 2020

Summary

FIC (1)

Work group focuses on economic risks caused by coronavirus

The Cabinet adopted at Tuesday's meeting the memorandum establishing an inter-institutional work group to analyze the economic and budget impact of the coronavirus epidemic effects. The group meetings will be attended by representatives of ANEIR, the Chamber of Commerce and Industry, CNIMM, the Coalition for Romania's Development (CDR), and the Romanian Banking Association (ARB).

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Macroeconomic News (2)

Romania's economy overtakes Czech Republic

Romania's GDP amounted to EUR 222 billion in 2019, exceeding that of the Czech Republic and pushing the national economy to the 13th place in the European Union, according to the estimates released by Eurostat on Tuesday. The figures were quoted by a report signed by Andrei Radulescu, head of Macroeconomic Analysis at Banca Transilvania.

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Goods traffic down 15%

The coronavirus outbreak in Italy has led to an average drop of 15% in the international road transport of goods conducted by Romanian companies, according to industry group UNTRR. The passenger transport services on Italian routes are down up to 100%. UNTRR urged the government to provide financial and fiscal compensatory measures for Romanian transport companies.

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Financial News (4)

Banca Transilvania granted almost 2,600 bridge loans under Start-Up Nation program

Banca Transilvania financed 5,500 of the 10,000 projects included in the Start-Up Nation program. The Bistrita-Nasaud, Salaj, Bihor, Timis and Prahova counties reported an average of 330 approved projects per county. The average age of entrepreneurs is 37. These projects created more than 25,000 jobs, 19,500 of which went to disadvantaged individuals, high school graduates, and unemployed.

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Banks advise clients to use online and mobile banking solutions

Banks are advising clients to use online and mobile banking solutions, cards or other types of contactless methods in order to pay for goods and services in stores in order to prevent the spread of the coronavirus. The advice came from the Council of Banking Employers in Romania (CPBR), whose five members service millions of clients.

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EximBank to provide retail services

The Parliament passed the decree allowing EximBank to provide universal banking services, with the purpose of increasing the financial intermediation rate, as well as the access of private individuals to specialized banking and financial products. The Chamber's Budget Commission had initially decided to keep the bank's retail services separate from the corporate side.

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Chamber passed debtor relief amendment

The Chamber of Deputies' commissions reported out favorably the amendment to the debtor relief bill, which defines unpredictability for loan contracts. The unpredictability threshold was defined as a 52.6% increase in the exchange rate, compared to the date the contract was signed.

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Investment News (1)

Flanco to invest RON 11 million this year

Flanco, a retailer of IT&C, electronics and home appliances, is preparing to spend RON 11 million in opening new stores and acquiring new technology, according to CEO Dragos Sarbu. The company has drafted a series of scenarios and is prepared for anything.

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Legislative News (1)

Chamber approves amendment to Decree 60/2009

The Chamber of Deputies approved an amendment to Decree 60/2009, which regulates the "Prima Casa" program. According to the new rules, the monthly income threshold of prospective beneficiaries was reduced, along with the subsidies offered by the state.

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Politics (1)

Local elections scheduled for June 28

The political parties agreed, in principle, to schedule the local elections for June 28, according to statements made after yesterday's meeting with Prime Minister Ludovic Orban. However, the final decision depends on the coronavirus epidemic situation.

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Social (2)

Romania has more than 4.94 million pensioners

At the end of February 2020, the number of pensioners was over 4.94 million people, out of which 375,843 were pensioners who had worked only in agriculture, according to data centralized by the National Public Pensions House (CNPP).

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Healthcare unions demand pay rises

The healthcare unions have sent the Minister of Health a document requesting pay rises ranging between 55% and 85% for the personnel working with coronavirus patients. The document invokes the regulations regarding personnel that engages in epidemic containment actions.

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