News

Daily Newsletter - 14 July 2020

Summary

Macroeconomic News (4)

Crisis hurt goods exports

Exports decreased by 40% in May, compared to May, 2019, a slight improvement compared to the 47% drop reported in April. Exports amounted to EUR 23.7 billion in the first five months of the year, down EUR 5.6 billion compared to the corresponding period of last year (-19%), while imports reached EUR 30 billion, down EUR 4.8 billion euros (-13.5%).

Top

RON 10.22 billion worth of loans granted through SME Invest program

The National SME Loan Guarantee Fund (FNGCIMM) announced on Monday that the SME Invest program had entered the fourth implementation phase, when the state aid is actually paid out. The program has facilitated the granting of RON 10.22 billion worth of loans in approximately two months, more than 34 times above the monthly average for bank loans in the last decade.

Top

Electricity exports up almost 40%, consumption down 7%

Electricity exports increased by almost 40% to 2,234.4 million kWh in the first five months of the year, while final energy consumption decreased by about 7% to 21,798.8 million kWh, compared to the corresponding period of 2019, the National Institute of Statistics (INS) announced on Monday. Between January 1 and May 31, 2020, primary energy resources decreased by 11.2%, while electricity resources decreased by 3.8% year-on-year.

Top

First local credit contract financed under EaSI

The European Investment Fund announced on Monday the signing of the first loan contract in Romania under the Employment and Social Innovation program. The contract is worth EUR 7.3 million and it will allow the Agricover group to reach a higher number of farmers in the micro-farming sector.

Top

Financial News (2)

Liquidity improves, BNR slows down acquisitions

The net liquidity deficit in the national banking system dropped from RON 8.6 billion in May to RON 4.6 billion in June. The National Bank of Romania (BNR) slashed its monthly acquisitions of state bonds by two thirds. The system's net liquidity position has improved significantly from the record deficit of RON 14.6 billion reported in April.

Top

MFP borrowed RON 270 million

The Ministry of Finance (MFP) borrowed RON 270 million from the commercial banks through an issue of benchmark state bonds with a residual maturity of 52 months and an average yield of 3.75% per year, according to the National Bank of Romania (BNR).

Top

Investment News (2)

Cereal Feed took RON 20 million in EU funds

Cereal Feed, part of the Nutrientul group, has taken almost RON 20 million in European funds for the construction of 12 grain silos and a maize mill, according to the Rural Investment Financing Agency (AFIR). The storage capacity will be around 120 tons per hour, while the mill will be able to process 100,000 tons of maize per year.

Top

Iulius launches Family Market project

Real estate developer Iulius has launched a new retail concept called Family Market. The first project based on this concept will be located in Miroslava, Iasi county.

Top

Legislative News (1)

PSD blocks quarantine bill vote

The interim president of PSD, Marcel Ciolacu, announced on Monday that the quarantine bill will not be voted on by the Senate until Prime Minister Ludovic Orban and the Minister of Health came before the specialized commissions. Four days ago, the bill was passed by the Chamber of Deputies, whose president is the same Marcel Ciolacu.

Top

Politics (2)

Barna: PSD is acting irresponsibly

Dan Barna, leader of the Save Romania Union (USR), state that the Social Democrats are acting irresponsibly, following the PSD's decision to block the passing of the quarantine and isolation bill. Barna added that all parties must understand they can't delay such bills in order to serve their own interests.

Top

Ciolacu: We'll file a motion of censure and it will certainly pass

Marcel Ciolacu, interim leader of the Social Democratic Party (PSD), said the PSD would file a motion of censure against the Orban Cabinet and that the motion would be "100%" successful.

Top

Social (2)

Romanians' financial wealth up 7% over 20 years

The financial wealth held by Romanians has increased by an average of 7% in the last 20 years, slower than the 10% increase in Central and Eastern Europe, the Baltic states and Russia over the same period, according to an analysis conducted by Boston Consulting Group. On the other hand, it may prove more resilient to the pandemic crisis compared to those of other people in the region.

Top

Minister of Education: Small chance of normal school year

The chances of holding school classes as normally this autumn are very low, according to the Minister of Education, Monica Anisie. The authorities are discussing several options for the upcoming academic year, depending on the pandemic situation.

Top