News

Daily Newsletter - 11 May 2020

Summary

Macroeconomic News (4)

APIA started paying diesel subsidies

The Agriculture Payments and Intervention Agency announced on Friday that it had started paying subsidies for diesel used in agriculture operations. The total Q4 amount is RON 117.3 million, with payments going to 13,050 beneficiaries.

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MFE announced EUR 1 billion in support for national economy

Talks with the business community have resulted in a series of solutions for the efficient recovery of the national economy, which would be supported with EUR 1 billion worth of funding allocated from other programs, according to a press release from the Ministry of European Funds (MFE).

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MFP to borrow EUR 1.2 billion from population

The Ministry of Finance (MFP) is evaluating all the financing options that do not come with strings attached. At the same time, MFP is considering borrowing EUR 1.2 billion from the population by reviving the mechanism used in 2015 and 2016. The issues of bonds will be listed on the Bucharest Stock Exchange (BVB).

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Romania's GDP exceeded Czech, Portuguese GDPs in 2019

Romania's contribution to the European Union's GDP was 1.6% in 2019, same as the Czech Republic, but bigger than Portugal (1.5%) and Greece (1.3%). According to Eurostat, Romania's GDP was around EUR 223 billion in current prices last year.

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Financial News (3)

OTP Bank Romania posts RON 10.7 million loss

OTP Bank Romania reported a loss of RON 10.7 million for the first three months of this year, the result of the bank's tripling risk cost due to the Covid-19 pandemic. The operating profits dropped to RON 36 million, following an 18% increase in operating expenses.

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ING earnings down 40%

ING Groep NV, the biggest banking group in Netherlands, posted a dramatic drop in earnings for the first quarter of this year, as provisions tripled because of the coronavirus pandemic. The group's profits dropped 40% to EUR 670 million, as provisions surged to from EUR 207 million to EUR 661 million.

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Banks will finance the economic recovery

Demand for credit could drop because 2020 is a year of financial stress for many, but the banks will finance the recovery of the economy, this time paying more attention to business loans. The banking system will be part of the solution in both early crisis management and during the recovery period, according to Sergiu Oprescu, Chairman of the Board of Directors at the Romanian Banking Association (ARB).

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Investment News (1)

Oil Terminal Constanta wants to borrow RON 31.7 million

Oil Terminal Constanta, operator of the state's oil terminal on the Black Sea, wants to borrow RON 31.7 million to modernize a tank in the South Platform Section.

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Legislative News (2)

Ludovic Orban: A decree will be issued, if CCR declares the state of alert legislation unconstitutional

If the Constitutional Court of Romania declares the state of alert legislation unconstitutional, the Cabinet will issue a decree to this effect, according to Prime Minister Ludovic Orban.

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PSD wants new rules for police officers

Four MPs belonging to the Social Democratic Party (PSD) introduced a bill that would amend the regulations governing police officers in order to apply the presumption of legality to the officers' actions. The bill also includes some financial benefits for police officers.

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Politics (2)

AEP sent presidential election report

The Permanent Electoral Authority (AEP) has completed the report on the organization and conduct of the 2019 presidential election. The report was sent to the Parliament.

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Tariceanu: The president has all the necessary tools

Calin Popescu-Tariceanu, leader of ALDE, said President Klaus Iohannis "has all the necessary tools, but is incapable of doing something about the economy".

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Social (2)

Measles cases reached 20,024

24 new cases of measles were reported this week in five counties, pushing the total number of cases to 20,024, according to the National Transmissible Disease Supervision and Control Center (CNSCBT) of the National Public Health Institute (INSP). 64 deaths were also reported this year.

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Rafila: There will probably be tens of thousands of tests

Alexandru Rafila, head of the Romanian Microbiology Society (SRB), said on Sunday evening that test samples will be collected from the population in June, with "probably" tens of thousands of tests processed in June and July.

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