News

Daily Newsletter - 15 June 2020

Summary

FIC (1)

FIC has new executive team

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.”


The Foreign Investors Council has a new executive team

Ramona Jurubita reelected president of FIC

The Foreign Investors Council has a new executive team

The Foreign Investors Council has a new executive team

FIC has new executive team

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Macroeconomic News (4)

Orban Cabinet mulls flexible work schedule

"I would like to say that we are witnessing a national premiere. Why am I telling you this? It's not because we, at AHK, have been discussing Kurzarbeit for almost three months and the need to implement this model as a perennial model, not necessarily now, in this event. The Coalition for Romania's Development (CDR) has thrown its weight behind the idea and we all agree that this model should be implemented. So, CDR supports this project 100%. We have discussed it with the employers, the biggest employers, and we agree on the principle," said AHK's Dragos Anastasiu..

BNR: Investment could plunge in Q2

The National Bank of Romania's (BNR) board of directors said the investment outlook is characterized by uncertainties and investment may plunge in the Second Quarter, making it almost the sole cause of this year's economic contraction. The BNR leadership is also concerned about the ongoing deterioration of the current account deficit this year.

Budget deficit will require adjustment

The restructuring of the state apparatus, which the National Liberal Party (PNL) has been talking about since taking over the government, was postponed because of the coronavirus pandemic, but it will become necessary, given that Romania was forced to spend a lot of money to prevent the economic crisis and the budget deficit will have to be reduced, according to Ionel Danca, head of the Prime Minister's Chancellery. "The number of public sector employees was 1.3-1.4 million in November, 2019. It's still at the same level. The COVID health crisis appeared, the government needed to focus on other priorities, in order to save the lives and health of the population and this was done with an additional need for financial and human resources," said Ionel Danca.

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Romania reported second worst drop in industrial production in EU

Romania had the second worst drop in industrial production of all European Union states in April, a significant worsening of the situation compared to the previous months, according to Eurostat data. With a 27.7% drop in industrial production, Romania ranked behind Hungary's 30.5%. The annualized contraction was 38.8%.

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Financial News (4)

Eastern European banks expect increase in NPL

Banks in Central, Eastern and South-Eastern Europe are facing one of the most difficult years since the global financial crisis, and many are expected to cut lending and face rising credit defaults, according to a study released on Friday. A survey conducted in March by the European Investment Bank, the financial arm of the European Union, shows that almost 65% of the banks surveyed expect the share of non-performing loans (NPLs) to rise in the coming months and approve a "visibly" lower number of new loans.

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CEC Bank to focus on farming, constructions, healthcare

"With the declaration of a state of emergency, the situation has changed. Our business was affected and we have seen a decline in demand for new loans, but priorities have also changed. CEC Bank focused on measures to ensure business continuity at a time when banking services are essential for the public," said the head of CEC Bank.

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Who are Banca Transilvania's shareholders?

The five financial investment companies and the seven privately managed pension funds in Romania increased their holdings in Banca Transilvania from 30.5% in December, 2018, to 36.3% at the end of 2019. The SIFs and the Pillar 2 pension funds increased their exposure to Banca Transilvania during 2019 from 30.5% to 36.4%, which means that these institutions are the largest shareholders of the Cluj bank.

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OTP Bank financed first company under SME Invest

OTP Bank has granted the first loans guaranteed under the SME Invest Romania program. These include the financing granted to Romanian container manufacturer Lucimet Prod SRL. The RON 1 million financing is already being used by the company as working capital in order to increase productivity at the Bucharest factory, according to a press release.

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Investment News (2)

CNI to invest RON 239 million

The Cabinet approved the technical and economic indicators for three new projects implemented by the National Investment Company (CNI): the consolidation and restoration of the former Mihail Sturdza Palace in Iasi, the rehabilitation and consolidation of the Carol I National College and Craiova Opera House, as well as the extension of the Sfanta Cruce Caraiman Social Center.

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MFE: Projects worth EUR 71.6 million filed

Sixteen projects for equipping the hospitals belonging to the COVID-19 network, worth a total of EUR 71.6 million, have been filed so far. The first 10 are expected to be approved this summer, according to the Minister of European Funds, Marcel Bolos.

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Legislative News (1)

PSD to introduce HoReCa bill

The Social Democratic Party (PSD) announced it would introduce on Monday a bill featuring measures to support the HoReCa sector, such as a VAT exemption for tourism services and having the state pay for the holiday vouchers issued by all employers.

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Politics (2)

President Iohannis: Romania and USA knew how to prove their solidarity

Romania and USA knew how to prove their solidarity, as well as the solidity of their bilateral relationship by providing mutual help in the context of security challenges, as well as the COVID-19 pandemic, according to President Klaus Iohannis.

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PSD supports intermediary state of alert

The Social Democratic Party (PSD) supports an intermediary state of alert, of up to 15 days, provided that hospitals receive chronic patients, churches reopen, the no-bid procurement process is stopped, and hotel restaurants are opened to families with children.

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Social (2)

Students with body temperatures above 37.3 C will not be allowed in classrooms

Students attending the National Evaluation will not be allowed in classrooms if their body temperature is above 37.3 C, according to the Ministry of Education.

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80% of Romanians want to spend their vacation in the country

"According to the survey we conducted, 80% of Romanians want to spend their holidays in Romania. The number of Romanians who want to spend their holidays in Romania is much higher than in other countries, and I, too, advise them, because of the epidemic, but also to show support for domestic tourism, to spend their holidays in Romania, because we have so many beautiful places to see. If each of us thinks of the beautiful places that this country has, but we never visited, let's go to these places and spend our holidays in our country this year, to support local tourism, and especially to we see with our own eyes the many beautiful sights that Romania has," said PM Orban.

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