News

Daily Newsletter - 12 June 2020

Summary

FIC (1)

FIC has a new executive team

This week, the Foreign Investors Council – FIC re-elected Ramona Jurubiță, Country Managing Partner KPMG Romania as FIC president. She will be supported by Eric Stab, Chairman & CEO of ENGIE Romania, Executive Director ENGIE Eastern Europe and Cristian Secoșan, CEO, Siemens Romania as vice-presidents. Daniel Anghel, PwC Board member and Tax and Legal Services Leader, has been appointed as treasurer.The objective that FIC assumed from the very beginning - contributing through its activities to the improvement of the business environment through dialogue and constant public consultations with the public authorities and all the relevant actors - remains central to all FIC projects and all its actions. FIC will continue to work, advocate for and promote the sustainable economic development of Romania through investments, particularly in a period characterized by new challenges at the global level. Ramona Jurubiță: "I thank my colleagues from the FIC Board of Directors for the trust they have placed in me. We will continue to contribute to the building of a resilient, diversified and high value-added economy for Romania. The reconfiguration of investments globally and regionally represents an opportunity in which the FIC can play two crucial roles in ensuring that our country is perceived as an attractive investment destination.”


Ramona Jurubiţă, was reelected President of FIC

Ramona Jurubiţă, was reelected President of FIC

FIC has a new executive team

FIC has new leadership team

FIC has new leadership team

FIC has new leadership team

FIC reelects Ramona Jurubita as president

FIC reelects Ramona Jurubita as president

FIC has new leadership team

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Macroeconomic News (3)

Adrian Vasilescu: Avoiding an economic contraction in the third quarter depends on foreign demand

"We will certainly have a big contraction in the second quarter. Some sources even talk about a very big drop - 14%. But I also think it will be followed by a recovery in the third quarter. But we cannot judge things only in relation with what is happening on our island because, if our trading partners have to restrict their demand, we will have nowhere to go and we will have another quarter of contraction, there will be a recession, but the big problems of the Romanian economy are not related to the GDP alone. They arise, first of all, from the vicious circle of deficits," said Vasilescu.

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Automotive production down 36% in five months

Automotive production amounted to 29,400 units in May, down almost 40% on an annual basis. Dacia and Ford resumed production on May 4, after around two months when both plants were shut down because of the pandemic.

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Orban: I guarantee that the SME Invest program will be a success

Prime Minister Ludovic Orban "guarantees" to the local business community that the SME Invest program "will be a success" and announced the Cabinet would allocate more than EUR 2 billion worth of grants to help companies recover, with EUR 550 million earmarked for SMEs, and EUR 100 million for small companies with no employees.

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Financial News (3)

Banca Transilvania maintained hiring pace in March-May

Banca Transilvania maintained its usual hiring pace between March and May, adding almost 70 new jobs per month across the country. "Despite the challenges of the situation generated by the pandemic, Banca Transilvania remained one of the most active and aspirational employers in terms of human resources activity," said Senior Executive Director Nevenca Doca.

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Government borrowed RON 1.1 billion

The Ministry of Finance (MFP) borrowed RON 1.15 billion through an issue of T-bills maturing in December. The primary dealers offered RON 1.37 billion for a prospectus featuring a RON 600 million borrowing target. The average yield is 2.73%.

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Banks are in solid shape

The banking sector is cyclical, sensitive to the dynamics of economic growth. An environment characterized by low interest rates and a demand shock, which depends heavily on unpredictable factors, is certainly a difficult context for the banks, said Ivan Vrhel, CEO of Citibank Romania. In the coming months, the most important thing for the authorities is to manage this restart of the economy at a pace and under certain conditions that will ensure the safety of citizens first and foremost, according to Vrhel.

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Investment News (1)

EUR 40 billion to be invested in transport infrastructure

Prime Minister Ludovic Orban announced that the Cabinet is planning to invest around EUR 40 billion in the road and railroad infrastructure. "Let's not forget that Europe sees railroad transport as a top priority because it's ecological, safe, comfortable, and we can't treat the railroad as others have been doing for the past years," said the PM.

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Politics (2)

President Iohannis: I don't want the state of alert extended with the current measures

President Iohannis stated yesterday that he does not want the state of alert extended with the current measures. The President wants a simpler, more supple version of the state of alert.

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PNL and PSD agree on local election date

The Social Democrats (PSD) and the National Liberals (PNL) filed a bill with the Senate in order to extend the terms of local officials until November 1. This means that the local elections must be held by October, at the latest.

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Social (2)

CNCD says banning children with body temperature above 37.3 C from national exams is discriminatory

The National Council for Combating Discrimination (CNCD) announced that banning children with a body temperature above 37.3 C from the national exams is discriminatory. "We are seeing a simple presumption, whose effect is a discrimination by association, since the student taking part in the exam with a body temperature above the limit is treated as a SARS-CoV-2 carrier, despite the lack of medical confirmation," noted the CNCD.

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Romania ranks last in road safety

Romania has the highest death rate from car accidents in the European Union, with 96 deaths per 1 million residents, according to the European Commission. Last year, 22,800 people died on EU roads last year, down 23% from 2010.

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