News

Daily Newsletter - 14 October 2020

Summary

Macroeconomic News (4)

Analysts revise inflation forecast downward

The inflation figures for September pointed to a drop in the annual rate, from 2.7% to 2.5%, while the analysts were expecting a slight increase. Economists say the National Bank of Romania (BNR) is unlikely to slash the key rate, currently the highest in the European Union. The price of potatoes dropped by the highest margin in nine years, while fruit prices fell 8%.

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IMF upgrades Romania forecast

Romania's economy will contract 4.8% of the GDP this year, according to the revised forecast released by the International Monetary Fund, a positive revision from the previous estimate of -5% of GDP, according to the World Economic Outlook report. The forecast for 2021 is a 4.6% increase in GDP.

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Automotive market dragged down by pandemic

Car sales are falling in Romania because of the Covid-19 crisis. According to statistics compiled by the Automotive Producers and Importers Association, the national car market contracted 32.3% in the first nine months of this year, while electric car sales surged 59.6% year-on-year. However, for the first time this year, September brought a significant increase in car registrations (72.8%). The increase could not offset the losses incurred between March and August.

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EIF: Romania better prepared for current crises

Romania is better prepared for the current crises from the point of view of its GDP, convergence and investment markets, according to Jose Cabrita, Senior Manager at the European Investment Fund. Cabrita added that Romania will continue to be attractive and develop its private and venture capital markets for the benefit of growing companies and start-ups.

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Financial News (3)

BT issued its first New House loan

The first house acquisition financed in part with a New House loan granted by Banca Transilvania was made in Bucharest. The two-bedroom flat cost a total of EUR 73,000, while the BT loan amounted to EUR 66,500, with a 4.17% interest rate. The monthly installment is around EUR 330.

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More than 80% of corporate deposits exceed EUR 100,000

29,159 corporate depositors exceeded the threshold of EUR 100,000 per deposit in H1, 2020. The combined deposits of corporate clients amounted to RON 100.5 billion. Nevertheless, corporate deposits accounted for only 30.4% of all the deposits exceeding the EUR 100,000 guarantee threshold, according to the latest information from the Bank Deposit Guarantee Fund (FGDB).

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Number of micro-grant applications close to 12,000

Around 11,700 self-employed individuals, micro-enterprises and NGOs had applied for the EUR 2,000 micro-grants by noon on Tuesday. The program was launched on Monday, part of the package of support measures worth a total of EUR 1 billion targeting SMEs affected by the pandemic.

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Investment News (2)

Romania logged H1 investment growth

Romania was the only member of the European Union to see an increase in productive investment in both the second quarter and the first half of this year, according to Andrei Radulescu, head of Macroeconomic Analysis at Banca Transilvania.

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Minister of Environment inks air quality forecast system deal

Romania will have an air quality forecast system, according to the financing contract signed yesterday by the Minister of Environment, Costel Alexe. The contract is worth RON 81 million, most of which will come from EU grants.

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Legislative News (2)

Companies with turnovers below EUR 1 million exempt from filing biannual paperwork

The Parliament passed a bill that exempts companies with turnovers below EUR 1 million from filing biannual paperwork with the Ministry of Finance. The bill was drafted by a group of USR MPs and received the backing of the Social Democrats.

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Parliament passes extended confiscation bill

The Chamber of Deputies passed yesterday the bill adding the extended confiscation of assets to the Criminal Code. The bill is now on its way to the president for promulgation.

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Politics (2)

President Iohannis to attend European Council meeting

President Klaus Iohannis will attend the European Council meeting in Brussels on October 15 and 16. The agenda will focus on the management of the COVID-19 pandemic, the future relationship between the EU and UK, and the fight against climate change.

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President vows December 6 election will be held

President Klaus Iohannis said "free elections are the essence of democracy" and stressed the need for democratic life to continue in society, as the country is preparing for the December 6 parliament election.

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Social (1)

State of alert extended by 30 days

The state of alert in force in the country will be extended by 30 days, beginning with October 15. "The trend is moving up across Europe, as well. It's the same in Romania," said the Minister of Health.

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