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Daily Newsletter - 12 February 2021

Summary

FIC Daily Newsletter | 12.02.2021
Macroeconomic (2) || Financial (2) || Investment (2) || Legislative (2) || Politics (2) || Social (2)
The measures aimed at supporting economy adopted in 2020 will continue in 2021
The measures aimed at supporting economy, in the form of state-guaranteed lending programs such as SME Invest, Agro Invest, SME Leasing or SME Factor, adopted by the Government in 2020 will continue in 2021 as well, National Liberal Party (PNL) leader Ludovic Orban stated yesterday. According to him, the European Commission saluted the efficiency of these programs at the level of EU member states and decided to prolong the State Aid Temporary Framework until 31 December 2021 in order to support companies affected by the Covid-19 pandemic.
European Commission forecasts 3.8% economic growth for Romania in 2021
Romania’s Gross Domestic Product will grow by 3.8% in 2021 and by 4% in 2022, according to the European Commission’s Winter 2021 Economic Forecast. The estimate is more pessimistic than the one of Romanian authorities. The European Commission’s forecast projects that private consumption will grow considerably starting from H1 of the current year as vaccination programs progress, and that economic growth will also be boosted by investments, especially in the constructions sector.
Public Finance Ministry has reopened two eurobond issuances
The Public Finance Ministry (MFP) has reopened two eurobond issuances and borrowed EUR 1.245 billion, more than 82% of the subscribed sum and over six times more than initially requested (about EUR 200 million per issue), according to official data. EUR 309.7 million was raised from the EUR 867.2 million bids on bonds due on 13 December 2023, with 0.09% average annual yield.
Romanian insurance market ended 2020 with a 5% advance
The Romanian insurance market reached a RON 11.5 billion volume of gross underwritten premiums in 2020, up by 5% against the previous year, according to a press release issued by the Financial Supervisory Authority. The value of gross underwritten premiums on the general insurance segment reached RON 9.28 billion, up by 6% compared to 2019. Moreover, the gross underwritten premiums corresponding to the life insurance segment slightly decreased, by 2%, having stood at RON 2.22 billion.
Comcereal Vrancea is investing into a craft bread factory
Comcereal Vrancea, a business that grows grains on about 4,000 hectares, managed by Director Gelu Scutaru, is to invest RON 140,000 (about EUR 30,000) in a bread factory and a confectionery-pastry department. The money has been obtained from European funds for production diversification, according to data from the Agency for Financing Rural Investments (AFIR).
Artesana will finalize a nearly EUR 5 million investment in 2021
Artesana dairy producer continues the nearly EUR 5 million investment to build a second plant in the town of Tecuci, Galaţi County. The new unit would bring an additional processing capacity of about 40,000 liters of milk per day, Daniel Donici, managing partner of Artesana, explained during the “Invest in Romania!” program made in partnership with CEC Bank.
Agriculture Minister is capping household pig farming
Agriculture Minister Adrian Oros has issued an order capping household pig farming. Agriculture Minister’s Order no. 24 of 29 January 2021 thus establishes the sizes of various types of pig farming exploitations on Romania’s territory, capping household pig farming at 5 pigs per household. The farms exceeding this number shall be considered commercial units and must be registered with the Trade Register Office and converted into legal entities.
Defence Minister Nicolae Ciucă has submitted a draft law
National Liberal (PNL) Senator and Defence Minister Nicolae Ciucă announced yesterday that he had submitted his first legislative proposal to the Senate’s Standing Bureau, regarding respect for national symbols. He indicated that Law no. 75/1994 stipulated the ways Romania’s flag should be carried and how the national anthem should be sung, but failed to include information on how citizens must show their respect for the two national symbols.
Diana Şoşoacă’s exclusion from AUR is generating controversies
Claudiu Târziu, co-president of the Alliance for Romanians’ Unity (AUR), has stated that his party was not represented by Diana Şoşoacă and that he does not understand the wave of discontentment generated by the Senator’s exclusion from the party. George Simion, the other leader of the Alliance, has nevertheless indicated that there are attempts to break the party and that he continues to support Diana Şoşoacă, despite Claudiu Târziu’s statements.
Prime Minister Florin Cîțu has gone on an official two-day visit to Brussels
Yesterday, Prime Minister Florin Cîțu met in Brussels with European Parliament President David Sassoli, within his official visit to European institutions on 11-12 February 2021. Talks targeted the main topics on the European agenda, with a special focus on pandemic management at European level, including the vaccination campaign in the EU, the Economic Recovery Plan, the launch of the Conference on the Future of Europe, and the EU’s external agenda.
Students will continue to benefit from free rail transportation
Deputy Prime Minister Dan Barna has assured that students will continue to benefit from free rail transport. Yesterday, he met with some of the members of the National Students Council who protested against this issue in front of the Government headquarters. Deputy Prime Minister’s talks with the students also targeted the criteria of the Euro 200 program for the acquisition of computers by students and the scholarships system and how the latter could be improved from students’ point of view.