News

Daily Newsletter - 16 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.”

Top

Macroeconomic News (4)

Total foreign debt up EUR 683 million in four months

Romania's total foreign debt reached EUR 106.55 billion at the end of April, up EUR 683 million from the end of 2019, according to a report released by the National Bank of Romania (BNR). The long-term foreign debt amounted to EUR 73.2 billion, down 0.5% from the end of 2019, while the short-term debt was EUR 33.2 billion, up 3.3%.

Top

Turnover for market services down 72.8%

The turnover for market services provided to retail clients dropped 72.8% in April (-65.1% in seasonally adjusted figures), according to data released by the National Statistics Institute (INS).

Top

Automotive sales down 45%

The Romanian economy dropped across the board in April. The turnover of the retail sector, except for car and motorcycle sales, dropped 22.3%, while services provided to retail clients plunged 80%. Car and motorcycle sales plunged 45%.

Top

Dependence on third country imports showed Romania's vulnerability

The best thing that state officials learned during this pandemic is that dependence on imports from outside of Europe, from China, Asia and other countries that are not in the European Union, showed how vulnerable the country is, according to statements made by the Minister of Economy, Energy and Business Environment, Virgil Popescu, at the "Post-Covid economic measures and prospects for the recovery of the Romanian economy" debate on Monday.

Top

Financial News (4)

Medium to long-term interest rates are falling

Romania's yield curve trended down in the second week of June, with medium and long-term interest rates showing the biggest drop, according to Andrei Radulescu, Chief-Economist of Banca Transilvania. The trend was influenced by the S&P decision to maintain Romania's rating last week.

Top

EximBank and Agricover Credit IFN boost loan to RON 200 million

EximBank and Agricover Credit IFN, the main financial institution dedicated to financing Romanian agriculture, announced on Monday that they had agreed to extend and increase to RON 200 million the ongoing loan agreement between the two parties, in order to provide much needed resources and develop new products and financial services for Romanian farmers.

Top

Cabinet suspends SME Invest amendments

The Cabinet suspended the implementation of the amendments brought by Parliament to the regulations of the SME Invest program. The Parliament had doubled the guarantee budget for banks and companies, increasing it to RON 30 billion. The Cabinet's decision was based on the fact that the changes to the program's rules had not been approved by the European Commission.

Top

ING Bank moves up in local index of banks

ING Bank, the Bucharest branch of the Dutch financial group, continued to move up in the local index of banks, overtaking Raiffeisen Bank to become the fifth largest in the country. The bank has been operating in Romania for 25 years, with a focus on organic growth and digitization.

Top

Investment News (2)

Nurol wins Sector 1 construction contract

Nurol's bid won the auction for designing and building Sector of Bucharest's northern beltway (A0 Nord), according to an official document posted on the Pro Infrastructura Association website.

Top

Minister of Economy says new reactors will be built

The Minister of Economy, Virgil Popescu, has promised that the authorities would soon begin "actually" building the third and fourth reactors of the Cernavoda Nuclear Power Plant. According to Popescu, the authorities have a "strategy" for developing the power plant.

Top

Legislative News (1)

Minister of Economy urges MPs to pass offshore bill

The Minister of Economy, Virgil Popescu, has urged the MPs to support the offshore bill, in order to unblock the Black Sea gas exploration and exploitation project. Popescu added that Cabinet had done its part by modifying Decree 114, indicating that it's now the Parliament's turn to act. "Energy was essential in this pandemic crisis. Energy and communications were the basis of economic development during this period," said Popescu.

Top

Politics (2)

PSD won't support state of alter extension beyond 15 days

The Social Democratic Party (PSD) will not support any extension of the state of alert beyond 15 days, according to interim leader Marcel Ciolacu.

Top

Parliament extends terms of local officials

The Chamber of Deputies passed on Monday the bill extending the terms of local officials until November 1. The terms were scheduled to end on June 21, but local elections cannot be held because of the restrictions imposed in response to the coronavirus pandemic.

Top

Social (2)

National Evaluation exams held with masks, disinfectants and social distancing

Students took the first National Evaluation exam, the first such exam where they had to disinfect their hands and wear masks. Only one student was admitted with a body temperature above 37.3 C.

Top

Observing the sanitary regulations by as many citizens as possible is the only way to prevent a return to isolation

The Strategic Communication Group (GCS) announced that the negative evolution of the ratio between the number of people confirmed with the new coronavirus and the number of cured cases requires an increased effort to comply with the responsible health behavior of society.

Top