News

Daily Newsletter - 13 July 2020

Summary

Macroeconomic News (4)

Trade deficit worsens

Romania's trade deficit increased to EUR 7.34 billion in the first five months of this year, up EUR 742.3 million compared to the corresponding period of 2019, according to data released by the National Statistics Institute (INS) today. Exports decreased by 19% in the first five months, while imports decreased by 13.5%.

Top

Ministry of Economy releases decree for public debate

On Friday, the Ministry of Economy released for public debate the draft decree setting up three financing programs for micro-enterprises, SMEs, and self-employed individuals. Under these programs, companies and individuals would benefit from micro-grants worth EUR 2,000, working capital grants of EUR 2,000-150,000, and investment grants worth up to EUR 200,000.

Top

Annual inflation rate climbed to 2.6% in June

The annual inflation rate climbed from 2.3% in May to 2.6% in June. Food prices jumped 5.35%, services are 2.78% more expensive, while non-food goods moved up 0.68%, according to the National Statistics Institute (INS).

Top

Average monthly income was RON 5,119 in Q1

The average monthly income of a Romanian household was RON 5,119 in the first quarter of this year, with expenses reaching an average of RON 4,269, according to the National Statistics Institute (INS). Money income amounted to RON 4,710 per household, with salaries and other such revenues being the most important revenue source.

Top

Financial News (2)

Interest rates are junk level

The financial markets have not adjusted the interest rates of Romania's euro bonds and the country is still being seen as "junk", despite the fact that S&P has decided to maintain the BBB- / A-3 rating, which belongs to the investment class, said Dan Bucsa, chief economist for Central and Eastern Europe at UniCredit Bank London, on Friday.

Top

More than 40% of corporate loans are short-term

The portfolios of bank loans granted to business clients are oriented towards short maturities, according to data released by the National Bank of Romania (BNR). Loans with residual maturities of up to 1 year account for approximately 41% of the portfolios in question, with a total value of RON 47 billion. Also, about 44% of the corporate loan portfolios consists of clients with negative liquidity, while 42% of loans were granted to highly indebted clients. BNR is concerned about the effects of a possible economic crisis, which could extend from companies to banks.

Top

Investment News (1)

Astra Museum to get EUR 5 million in financing

The Astra Museum in Sibiu, the biggest open air museum in Romania, will benefit from almost EUR 5 million in investment capital over the next couple of years. The funds will come from Norwegian grants and the state budget. The museum will build a new concert stage on a lake, while also modernizing the house it owns in central Sibiu.

Top

Legislative News (1)

Senate postpones quarantine bill vote

The Senate decided on Saturday to postpone the commission discussion of the quarantine and isolation bill until Monday, despite the fact that the bill is supposed to be discussed under emergency rules. Prime Minister Orban accused the Social Democrats of insisting on hindering the Cabinet.

Top

Politics (2)

Teodorovici runs for PSD leadership

Eugen Teodorovici, former executive president of the Social Democratic Party (PSD), is officially running for party leader, according to the announcement made at a press conference. Teodorovici accused the current leadership of seemingly being determined to turn the biggest party in the country into the smallest one.

Top

Turcan: Holding the elections is a must

Deputy PM Raluca Turcan stated that holding the local elections this autumn is "a must", adding that elections can be held in "optimal public health conditions".

Top

Social (2)

Nelu Tataru: We're following the slow growth trend

The Minister of Health, Nelu Tataru, said the number of COVID-19 cases continues to grow slowly. The virus continues to spread because people tend to gather in some places during the summer holiday.

Top

Romanian population continues to age

Romania had a resident population of 19.4 million on January 1, 2019. Compared to the previous year, the average age of the population continued to increase, according to the INS. Women account for 51.1% of the resident population, the equivalent of 9.91 million individuals.

Top