News

Daily Newsletter - 16 February 2021

Summary

FIC Daily Newsletter | 16.02.2021
FIC (1) || Macroeconomic (3) || Financial (3) || Investment (1) || Politics (2) || Social (2)
Foreign direct investments decreased in 2020
Foreign direct investments dropped 60.38% in 2020 year-on-year, to EUR 1.921 billion, according to data published by the National Bank of Romania (NBR) on Monday, 15 February 2021. Intragroup loans recorded a EUR 2.032 billion negative net value, NBR press release indicates. "According the the FIC Report on FDI even if this negative trend is expected to reverse in the coming months, the initial signal provided by the FDI flow direction in the first half of 2020 of decrease. It would be appropriate for Romania to have a more intense presence on international markets, especially during this period, through government agencies for attracting investments and promoting exports. With a proactive attitude, they could coordinate contacts with potential investors, facilitating the relationship with local governments in the implementation of investment projects. "
Romania’s total external debt grew in 2020
Romania’s total external debt increased by EUR 15.66 billion in 2020, having exceeded EUR 125 billion, according to the data published by the National Bank of Romania (NBR) yesterday. The aforementioned source also indicates that long-term external debt totaled EUR 91.27 million on 31 December 2020, up by 22.8% against the similar period of the previous year, while the short-term external debt stood at EUR 34.17 million, down 3.6%.
The current account of the balance of payments increased last year
The current account of the balance of payments grew by 4.8% last year compared to 2019, to EUR 10.983 billion, according to a press release issued by the National Bank of Romania (NBR) yesterday. The balance of payments on the services sector recorded a EUR 981 million higher surplus balance in 2020 than in 2019 (+11.3%), to EUR 9.633 billion.
The pension point will stay at RON 1,442 this year
The pension point will stay at RON 1,442 this year, the level reached following its increment in September last year, as per a draft Emergency Ordinance of the Ministry of Finance. Moreover, an increase in the pension point by the average annual growth rate of inflation, plus maximum 50% of the real increase in the gross average wage in economy is being considered for next year.
The dynamics of agricultural lending remained high in 2020
The dynamics of agricultural lending remained high in 2020 as well, the year-on-year growth rate of financing for this sector having reached 11.5% at the end of 2020. The balance of granted loans and commitments assumed by credit institutions in Romania for the agricultural sector stood at RON 20.4 billion, according to NBR data.
The Ministry of Finance borrowed RON 1.2 billion from banks
The Romanian state continues to be the most important business partner of banks on the market. The Ministry of Finance borrowed RON 1.2 billion from banks yesterday alone, through a benchmark government bonds issue. The bonds have 64-month residual maturity and a 2.30% average annual yield, according to the data transmitted by the National Bank of Romania.
Romania’s long-term interest rate decreased in January 2021
Romania’s long-term interest rate decreased to 2.72% in January 2021, according to data published by Eurostat and taken over by the European Central Bank. This indicator had hiked to 4.83% in April 2020 amid the necessary financing imposed by the fight against the effects of the Covid-19 pandemic.
Dr. Leahu network is expanding
Dr. Leahu network is to open, in the first half of the year, a dental clinic in Ploiești and a dental hospital in Cluj-Napoca, which represents the company’s biggest investment so far, worth EUR 1.5 million. The two inaugurations will not be the only ones this year, as the network has an aggressive expansion plan, which includes the launch of 20 clinics within the next five years.
The simple motion filed against the Health Minister was debated yesterday
Yesterday, the Chamber of Deputies debated the simple motion filed by the Social Democratic Party (PSD) against Health Minister Vlad Voiculescu. The motion entitled “Incompetence and lack of commitment can KILL! Vlad Voiculescu, a threat for Romanians’ health and lives!” is the first motion tabled by the opposition against a member of Cîțu Government. The vote will take place on Wednesday. The session ended in scandal after the leader of PSD’s parliamentary group Alfred Simonis requested that the vote on the simple motion should be held on Monday.
Diana Şoşoacă has been revoked from all positions in Parliament
During yesterday’s plenary session, the leader of the Alliance for Romanians’ Unity (AUR)’s senatorial parliamentary group, Claudiu Târziu announced senator Diana Şoşoacă’s exclusion from the party and her revocation from the position of chairman of the Abuse Investigation Committee and of member of the Legal Affairs Committee. He pointed out that Rodica Boancă would take over the presidency of the Abuse Investigation Committee, while Dorin Cristian Mate would fill the seat left vacant within the Legal Affairs Committee.
Work Inspection Authority imposed over 13,300 fines last year
Work Inspection Authority imposed over 13,300 fines last year, 12% more than in 2019, totaling EUR 29 million, 10% above the sums imposed in 2019. The increase in numbers occurred amid the Covid-19 pandemic, when over one million employees were furloughed and there were two months of state of emergency.