News

Daily Newsletter - 15 September 2020

Summary

Macroeconomic News (4)

Minister of Finance points to strong industrial recovery

The Minister of Finance, Florin Citu, wrote that the industry had recovered strongly in the third quarter and stood by his estimate that the economy had followed a V-shaped trend during the COVID crisis. Citu added that he had "eliminated all the apocalyptic scenarios" threatening the national economy.

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FDI down 60% in seven months

Foreign direct investment decreased to EUR 1.326 billion in the first seven months of 2020, down 60.23% compared to the corresponding period of last year, according to data released Monday by the National Bank of Romania (BNR). The number of newly established foreign capital companies dropped to 2,110 units in the same period, a 37% year-on-year contraction.

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Government debt reached 42.2% of GDP

The public administration's debt amounted to RON 444.3 billion at the end of July, 2020, the equivalent of 42.2% of the GDP, up from RON 373.5 billion at the end of last year, according to data centralized by the Ministry of Finance. The short-term debt amounted to RON 14.96 billion.

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Industrial demand down 12.7%

Between January and July of this year, new manufacturing orders decreased by 12.7% in nominal terms, while the industry's turnover dropped 12.8%, compared to the corresponding period in 2019, according to data published by the National Statistics Institute (INS). The fall in manufacturing demand is less than the 14.1% reported in June.

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Financial News (3)

Current account deficit down

The current account deficit of the balance of payments dropped to EUR 4.86 billion in the first seven months of this year, compared to EUR 6.03 billion in the corresponding period of 2019, according to the National Bank of Romania (BNR). The goods balance showed a EUR 635 million higher deficit, while the service surplus increased by EUR 370 million.

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3M ROBOR rate down

The three-month ROBOR rate, which is used to calculate the cost of RON-denominated adjustable interest loans, dropped from 1.99% to 1.98% per year on Monday, according to the National Bank of Romania (BNR). At the beginning of this year, the three-month rate was 3.19%.

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Libra Bank posts RON 23.9 million in H1 earnings

Libra Internet Bank, a small local lender specializing in financing professionals, logged RON 23.9 million in earnings for the first half of this year, more than twice lower compared to the corresponding period of 2019. The bank's aggregated revenues amounted to RON 164.8 million, up 8.12% year-on-year.

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Investment News (2)

CTP to complete IKEA distribution center this year

CTP, the biggest developer of premium industrial and logistic parks in Romania and in Central and Eastern Europe, announced on Monday that it had been designated the developing partner of the joint-venture set up by IB Cargo and Maersk. The joint-venture will operate the IKEA Supply AG distribution center that will be located inside ctPark Bucharest West.

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Satu Mare County Council invests in new hospital building

The Satu Mare County Council will spend EUR 24 million on expanding the county's emergency hospital. Almost half of the funds are coming from the European Union, through a project filed under the Interreg V-A program. The rest of the money is provided by the County Council and the government.

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Politics (2)

Basescu: I'm asking Ciolos to quit politics

Traian Basescu has asked Dacian Ciolos to quit politics for having disbanded the Ministry of Internal Affairs' (MAI) intelligence unit and allowed the criminal clans to run amok across the country.

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Nicusor Dan says Firea and Pandele respect nothing

Nicusor Dan, the Bucharest mayoral candidate backed by PNL and USR-PLUS, said the photo of incumbent Firea and her children in a classroom is proof that Firea and Pandele, her husband, respect neither the law, nor the other parents.

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Social (1)

School begins during pandemic

Nearly three million children started school on Monday, most of them in the classical system, which requires physical attendance. 262 schools (totaling less than 100,000 students), out of a total of over 17,000, students will study exclusively online. The laptops purchased by the Ministry of Education have not yet been delivered to schools for distribution to disadvantaged children.

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