News

Daily Newsletter - 18 June 2020

Summary

Macroeconomic News (5)

CFA Romania expects 8.5% budget deficit

CFA Romania analysts expect the state budget to show an 8.5% deficit at the end of this year, coupled with an unemployment rate of 7.8%. 38.8% of the analysts surveyed by the organization expect the impact of the coronavirus pandemic to be felt strongly until the first quarter of 2021.

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Cereals exports suspension undermined Romania's credibility abroad

The suspension of cereals exports, a decision taken by the authorities in April, when Romania was in a state of emergency due to the new coronavirus, has cost Romanian agricultural traders and farmers hundreds of thousands of euros, but especially cost the country some of its credibility in foreign markets. The decision still produces effects in the market, even through it was reversed later.

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Turnover for market services provided mainly to companies dropped 17.3%

Turnover for market services provided mainly to companies decreased by 14.7% (adjusted figure) in April, compared to March, according to data published by the National Statistics Institute (INS) on Wednesday. The annualized trend was an 8.2% drop.

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Romania ranks almost last in EU for structural fund use

Romania was allocated EUR 30.9 billion worth of European structural and investment funds under the 2014-2020 budget. However, the 2019 report issued by the Fiscal Council showed the country had absorbed only 29.9% of the funds by February of this year, compared to a European average of 37.7%.

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Romania maintained highest increase in construction works in EU

Romania maintained in April the highest growth rate for construction works in the European Union, being one of only three countries to post a positive figure. Construction works jumped 12.2% in April, compared to the corresponding period of 2019.

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Financial News (3)

Banks granted RON 4 billion worth of SME Invest loans

The banks granted RON 4 billion worth of loans under the SME Invest program. The EUR 1 billion milestone is expected to be reached this week, according to Cristian Paun, chairman of the board at the National Loan Guarantee Fund for SMEs (FNGCIMM).

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ING still top player of state bond market

After the first four months of this year, ING Bank was the biggest primary dealer of state bonds, followed by BRD-GSG and BCR. ING has been the top primary dealer since last year.

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Traian Halalai, head of EximBank: We are prepared to implement other client support measures

EximBank has made every effort to help companies overcome this unusual period created by the COVID-19 pandemic. The implementation of measures was based on a prudent approach, for both the bank and the clients, with each application being evaluated separately. EximBank postponed overdue payments for up to 180 days, extended overdue credit lines by 12 months, quickly provided working capital facilities for companies affected by the coronavirus crisis and simplified processes, according to the bank's chief executive.

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Investment News (1)

One of Italy's biggest electricity producers is building Timisoara neighborhood

FRI-EL Buildings, part of Italian group FRI-EL Power, one of the biggest renewable electricity producers in Italy, will invest more than EUR 80 million in developing the Ateneo Timisoara residential ensemble. The ensemble will be the first integrated residential project in Timisoara, featuring 1,300 apartments and a Lidl supermarket.

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Legislative News (1)

Chamber passed special pension tax

Special pensions will be taxed up to 85%, following the Chamber of Deputies' decision to pass a bill with the backing of both Social Democrats (PSD) and National Liberals (PNL). Only one deputy voted against the bill.

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Politics (2)

President Iohannis discussed economic recovery program with Charles Michel

President Klaus Iohannis discussed with Charles Michel, President of the European Council, the Multiannual Financial Framework 2021-2027 and the European Commission's economic recovery plan. "President Iohannis insisted that Romania's allocation should be as significant as possible for both the cohesion policy and the agriculture sector," according to the official press release.

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PSD to begin motion of censure procedure

The Social Democratic Party (PSD) will begin the procedures for a motion of censure against the Cabinet, which will be filed as soon as the state of alert ends, according to party leader Marcel Ciolacu. Ciolacu argued that the Cabinet had only informed the Parliament about extending the state of alert.

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Social (1)

INSP drafts recommendations for reopening schools

The National Public Health Institute (INSP) has drafted a set of measures ahead of the reopening of schools, which will be implemented if the risk of a COVID-19 epidemic rises this autumn. The document was posted on the Ministry of Health's website, but Minister Tataru explained that the recommendations would be updated during the summer.

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