News

Daily Newsletter - 18 November 2020

Summary

FIC (1)

Forbes CEE Forum 2020

What should be the state's priorities in order to recover economically? Ramona Jurubita, President of the Foreign Investors Council and KPMG Country Managing Partner in Romania, presented a whole list of proposals. In an uncertain economic context, affected by the pandemic, Romania's government say they are trying to find the best solutions in order to put an end to the current crisis. She underlined the importance of the flow of foreign investments, an area in which Romania still has much to improve. "I think that one thing we need to continue working on in this regard is private investment, both domestic investment and foreign investment. I think that attracting foreign investments must also be a priority for Romania, especially since, let's not forget, we are in a regional competition in this segment ".

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Macroeconomic News (4)

Drought, lack of infrastructure investment hurts agriculture

The turnover of Romanian agriculture companies is expected to contract by about 15% this year. The drought, along with the lack of infrastructure investment are depressing the turnovers of more than 25,000 local companies, pushing their combined turnover from almost RON 46 billion in 2019 to around RON 39 billion in 2020.

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MFP launched new "Tezaur" bonds

Beginning on November 17, Romanians can subscribe the new issues of government bonds reserved for retail clients through the "Tezaur" Program, with a nominal value of RON 1 and maturities of 1, 2 and 3 years, according to a press release from the Ministry of Finance (MFP). The interest rates range between 3.5% and 4.00%.

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Construction industry grows

Romania had the best construction dynamics of all EU members in the first 9 months of the year. Statistical data regarding the evolution of the construction sector in September released by the INS indicated a further increase in activity in this sector. The positive sentiment of this industry is consolidating, spurred along by the relaxed mix of economic policies implemented in Romania, according to Andrei Radulescu, Director of Macroeconomic Analysis at Banca Transilvania.

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Virgil Popescu: The economy is moving forward even in a pandemic

"We had a lockdown, things were not good during that lockdown that we had at the beginning of this pandemic [...]. I think the economy is recovering slowly. And the news about the vaccine against this disease is good. And I think we will recover," said Economy, Energy and Business Environment Minister Virgil Popescu. He reiterated the fact that the business environment needs predictability and stability in order to make business plans and grow, but it also needs capital.

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Financial News (4)

CEC Bank launches Google Pay payments

CEC Bank announced the launching of Google Pay services. This will give clients a new and modern payment system for online purchases. The holders of CEC Bank cards can use Google Pay to make contactless payments directly from their Android devices, safely, easily and quickly.

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ING announces changes to its services

Beginning with next March, the cards attached to ING Card Complet accounts or EUR-denominated current accounts, both newly issued and renewals, will be delivered to the address indicated by their holders at a delivery cost of RON 18 per card, in up to 7 working days. Cards that have not been used for transactions in the last 4 months before their expiration will not be renewed.

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Third of Romanians would keep savings at home

Half of Romanians claim that, if they managed to save RON 350 every quarter, they would deposit the money in a bank account, while a third would keep their savings in an envelope in a drawer, according to a study by Reveal Marketing Research. Only 8% of respondents said they would choose to invest in life insurance and only 4% of Romanians would invest in stocks through a broker.

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SMEs proved quite resilient during crisis

"One new factor we're seeing during this crisis is that SMEs proved to be quite resilient, though they obviously received significant support from the state and the authorities. In March, we expected 2-3 months of crisis followed by a comeback, whereas now we see that, even though things are still not improving after 8-9 months, companies are still in business," said Sergiu Mircea, marketing and communication director at Banca Transilvania.

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Investment News (2)

E.ON Energie Romania to install LED lights in 10 towns

E.ON Energie Romania has signed contracts with 10 city halls in the Arad, Timis, Maramures, Neamt and Suceava counties to install more than 4,300 LED lights in these towns. The combined value of these contracts is EUR 1 million.

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EUR 750 million program for expanding social services

The Ministry of European Funds (MFE) has released for public debate the Social Inclusion and Dignity Operational Program (POIDS) 2021-2027, worth a total of EUR 750 million, which aims to expand social services in communities facing the risk of poverty and social exclusion.

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Legislative News (2)

"Kurzarbeit" bill sent to president

The Chamber of Deputies passed, with amendments, the bill regulating the reduced schedule work programs implemented during the states of emergency and alert, also known as "kurzarbeit". This is the first time Romania implements a reduced work schedule system.

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Employers could be allowed to pay more into employees' private pension accounts

Employers will be able to pay into the employees private pension accounts an amount of no more than EUR 150 per month per employee, which will be deducted from the profit tax or income tax of microenterprises, according to a bill drafted by several MPs belonging to the National Liberal Party (PNL).

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Politics (1)

Iohannis: The Orban Cabinet must not step down

The Cabinet headed by Ludovic Orban "must not step down", given that the cabinet had taken responsibility "when everyone else preferred to criticize from the sidelines", said President Klaus Iohannis at yesterday's press conference.

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Social (1)

Army doctor to coordinate national vaccination campaign

President Klaus Iohannis announced on Tuesday that military doctor Valeriu Gheorghita, a specialist in infectious diseases working at the Central Military Hospital, had been appointed coordinator of the national Covid-19 vaccination campaign. The president organized the third meeting to evaluate the measures regarding the management of the COVID-19 pandemic, announcing at the end of the meeting that the authorities had completed the Covid-19 vaccination strategy, which will be published next week.

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