News

Daily Newsletter - 17 March 2020

Summary

FIC (1)

Foreign Investors Council: We need urgent measures to help Romania’s economy remain functional

The Foreign Investors Council and Concordia Employers' Confederation, two of the biggest business organizations in Romania, have proposed to the Government a set of over 100 urgent measures that would help the business environment overcome this critical moment and protect the consumers from the indirect effects of the coronavirus epidemic. “The authorities and the business environment must have a three-dimensional approach: maintaining the socio-economic balances and the fiscal-budgetary ones, concrete actions on the most affected and important sectors and creating a risk matrix, so that they are prioritized depending on how the situation evolves in the economy. State support measures are needed to prevent blockages or bankruptcies of otherwise healthy sectors or companies, and the state itself needs resources. The Foreign Investors Council and Concordia Employers' Confederation consider that a constructive approach from the authorities is important. Companies are here to be consulted.,” the two business organizations said in a press release.


Economic measures proposed by FIC and CPC

Business community's requests

The economic impact of the healthcare crisis

State of emergency in Romania

Banks need government and BNR support to defer payments

Proposals to stop the economic crisis caused in Romania by COVID-19

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Macroeconomic News (3)

Erste slashes growth forecast again

Erste revised downward, for the second time in a week, the estimates regarding the growth of the Romanian economy this year, amid the increased risk of recession in the euro area, in the context of the coronavirus epidemic. Analysts of the Austrian banking group now expect an economic growth of only 2% this year, compared to the previous 3% estimate.

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MFP proposes EUR 10 billion increase in borrowing

The Ministry of Finance (MFP) proposed to increase by EUR 10 billion the sums that the state can borrow from foreign markets, by increasing the framework program for issuing "Medium Term Notes" (MTN) from EUR 31 to EUR 41 billions, according to a draft decision published by the institution.

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Minister promises support for economy

The Cabinet will prepare a set of economic measures to support the companies affected by the coronavirus crisis, according to a press release from Virgil Popescu, Minister of Economy, Energy and the Business Environment. The Minister stressed the fact that the economy must not falter.

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Financial News (4)

BCR offers period of grace

Representatives of BCR, the second biggest bank in the country, said they have concrete measures for clients, based on each individual's situation: the deferred rates could either be redistributed, which would push up the other installments, or moved, which would extend the maturity period.

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CEC Bank postpones all retail loan installments

CEC Bank announced on Monday that it is prepared to support a 30-day deferral of installment payments on loans granted to retail clients because of the Covid-19 crisis. "The measure applies automatically to all clients who do not have in their accounts, at the due date, the sums needed to cover credit installments or credit limits for cards, without the need for additional paperwork, and is valid for all loans: housing loans, consumer loans and credit cards."

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Banks request government, BNR help

The Romanian Banking Association (ARB) and the Council of Banking Employers in Romania (CPBR) announced that lenders are looking for technical and legal ways to help clients. However, lenders need help from the government and the National Bank of Romania (BNR) to implement new measures without affecting the clients' risk profile.

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BNR could make use of emergency loans

The National Bank of Romania (BNR) is very interested in keeping the banks from going bankrupt and will make use of emergency loans if special situations require it, according to Adrian Vasilescu, adviser to the BNR Governor.

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Investment News (1)

Boca family to invest EUR 2 million in Vatra Dornei hotel

The Boca family, which controls Dorna Medical, one of the leading players of the national medical laboratory market, has bought the Bucovina Hotel from the bankrupt Societatea Feroviara de Turism CFR. The family wants to invest EUR 2 million in modernizing the hotel.

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Politics (2)

USR to back state of emergency

Dan Barna announced that the Save Romania Union (USR) MPs will vote in favor of the decree instituting the state of emergency in the country because they want to support the adoption of special measures to address the public health crisis.

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US ambassador praises unity

The US Ambassador to Bucharest, Adrian Zuckerman, has praised the leaders of political parties for "uniting in this moment of crisis to respond to a global problem", as well as the swiftness with which the Orban Cabinet was approved.

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Social (1)

Number of pensioners down

The average number of pensioners was 5,140 million in the fourth quarter of 2019, down 6,000 from the previous quarter, while the average number of state social security pensioners reached 4,669 million, according to data from the National Statistics Institute (INS).

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