News

Daily Newsletter - 12 May 2020

Summary

FIC (1)

FIC donated RON 700,000 to Romanian Red Cross

The Foreign Investor Council has donated RON 700,000 to the Romanian Red Cross. The funds were used to buy three ventilators and seven ATI monitors, which will arrive in the country in early June and will be donated to hospitals, based on the Ministry of Health's recommendations.

FIC donated to Romanian Red Cross

FIC donated to Romanian Red Cross - Facebook FIC post

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Macroeconomic News (4)

Despite restrictions, Romania's economy kept growing

The restrictions imposed after the beginning of the coronavirus pandemic have significantly affected the economies of Central and Eastern Europe in the first quarter, but Romania, Hungary and Poland continued to grow in annual terms, albeit at a much lower rate compared to the previous three months. The retail sector in particular and a solid overall performance in general saved Romania's economy from an annual decline, according to a report from Erste Group Research.

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EUR 16.7 million for farmers

The Ministry of Agriculture and Development (MADR) announced that EUR 16.7 million were made available for investment in preventing and fighting swine fever, as well as for rebuilding the agricultural production potential in the wake of natural disasters and catastrophic events.

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Trade deficit up almost 20%

Romania's trade deficit reached EUR 4.46 billion at the end of March, up EUR 732.4 million compared to the first three months of 2019, according to the National Statistics Institute (INS). FOB exports amounted to EUR 17.07 billion, while CIF imports reached EUR 21.53 billion.

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Goods traffic in ports up 3.31% in four months

The flow of goods through the Constant, Midia and Mangalia ports increased by 3.31% in the first four months of this year, reaching a total of 20.46 million tons, according to the Constanta Administration of Maritime Ports (APMC). All ports are operating normally, without any dysfunctions.

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Financial News (3)

Bank disappears from local market

After May 15, when we will be able, for better or worse, to leave our houses for longer trips, we will be surprised to find that one of the banks operating in Romania has disappeared. First Bank, a lender owned by US investment fund J.C. Flowers & Co., has concluded the legal and operational merger with Bank Leumi Romania, a subsidiary of Bank Leumi Israel. The transaction was launched in the summer of 2019.

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Borrowing down in March and April

Patria Bank has received more than 1,600 requests for postponing the payment of loan installments, from both business and retail clients, with business clients accounting for about 55% of all applications. Patria Bank, a lender owned by the Emerging Europe Accession Fund (EEAF), saw a decrease in credit sales in March and April, due to the state of emergency. Retail borrowing was the most affected business line, according to Daniela Iliescu, CEO of Patria Bank.

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ING Bank Romania has 95% of employees working from home

ING Bank Romania announced that it has gone from an average of 14% of staff working from home to over 95% in just a few days, while maintaining the usual workflow and standards. This has led to a work-from-home experience on a larger scale, as well as the opportunity to discover what the most important benefits of this digital process are.

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Investment News (1)

Pitesti-Sibiu Highway contract signed

The contract for Section 5 of the Pitesti-Sibiu Highway was signed in Pitesti on Monday, in the presence of Prime Minister Ludovic Orban. The 122-kilometer highway was split into five sections, crossing three counties.

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Legislative News (1)

Farmers could be exempt from paying for electricity

Farmers will be exempt from paying for the electricity needed to operate irrigation systems, according to a bill submitted to Parliament shortly after the Legislature decided that water used for irrigation is exempt from any taxes. The first evaluations made by the Ministry of Agriculture indicate that almost one million hectares of crops are affected by drought. Some farmers are thinking of reseeding in order to reduce their losses.

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Politics (1)

Four parties to launch Operation Asparagus

The Parliament will vote on establishing a panel to look into the seasonal worker situation, dubbed Operation Asparagus, at the request of the Social Democrats (PSD), ProRomania, ALDE and UDMR. The contradictory answers offered by the Ministers of Labor and Foreign Affairs have upset the opposition MPs, leading to the call for a special panel.

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Social (2)

Firea: We'll started both testing projects

Gabriela Firea, the Mayor of Bucharest, announced that the municipal authorities will launch both population testing projects in the next few days. The first project is run by the Matei Bals Institute and focuses on determining the extend of the coronavirus spread, while the second is an antigen test on volunteers.

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Number of deaths down in March

The population of Romania dropped in February and March of this year, compared to the corresponding months of 2020, according to data released by the National Statistics Institute (INS) on Monday. The number of newborns was down 702 in March, while the number of deaths was down 298.

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