News

Daily Newsletter - 19 January 2021

Summary

Macroeconomic News (4)

IT&C retail surged 21.4%

The turnovers of wholesalers of computer and telecommunications equipment increased by 21.4% (adjusted figures) in the first 11 months of last year, compared to the corresponding period of 2019, according to data announced by the National Statistics Institute (INS) on Monday. This is the largest increase of the entire wholesale sector. Meanwhile, wholesalers of machines, equipment and supplies reported a 4.2% drop in turnover.

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Cabinet counts on 4.3% economic growth this year

The Cabinet hopes for an economic growth rate of 4.3% in 2021, a downward revision from the previous forecast of 4.5%. The inflation rate is expected to reach 2.5% by the end of the year, while the average RON/EUR exchange rate will be RON 4.89/EUR in 2021, according to a document published by the National Strategy and Forecast Commission (CNSP). The Cabinet used these figures to build the state budget for 2021.

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National media market down 2.7% in 2020

The Romanian media market decreased by 2.7% in 2020, down to EUR 467 million. However, the market is expected to grow 4% this year, up to EUR 485 million, driven mainly by investments in digital and TV media. The pandemic has had a strong impact on media budgets, leading to a sharp reduction in April and May, when many brands limited their communication over uncertainties caused by the social and health context.

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Young farmers can apply for farmland leases

The second session of leasing farmland to young farmers started on Monday. The application period will end on January 29, 2021, according to the Minister of Agriculture, Adrian Oros. The counties where the farmland is located are Alba, Gorj, Ialomita, Neamt, Satu Mare, Timis, Teleorman and Valcea.

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Financial News (3)

CEC Bank has new network director

Gabriel Pralea is the new director responsible for the administration of CEC Bank's network of branches, a position that puts him in charge of a network that includes more than 1,000 units, according to a press release. Gabriel Pralea has over 17 years of experience in the banking system and has held various management positions at BCR and UniCredit.

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ROBOR plunges after rate cut

The three- and six-month ROBOR rates have fallen to the lowest figures since September, 2017. The National Bank of Romania (BNR) decided on Friday to slash the key rate to 1.25% per year, which pushed the three-month ROBOR down from 1.78% to 1.59%, while the six-month rate fell from 1.94% to 1.72%.

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TBI Bank and Netopia Payments offer loans to retailers

TBI Bank, part of the 4Finance group, and Netopia Payments, one of the most popular online payment processors in Romania, have concluded a partnership through which merchants can apply for up to EUR 20,000 in financing.

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Investment News (2)

OMV Petrom launched EUR 32 million Black Sea investment project

OMV Petrom, the largest energy company in Southeastern Europe, announced on Monday that it had launched a new offshore drilling campaign in the shallow waters of the Istria perimeter in the Black Sea. The first drilling operations started at the end of December, 2020, while the drilling of the second well will start at the beginning of this year. The project costs an estimated EUR 32 million.

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Lindab invested in Stefanestii de Jos production facilities

The Romanian subsidiary of the Swedish group Lindab, which operates a metal tile and construction materials factory in Stefanestii de Jos, Ilfov County, will continue to invest in production. The company has a three-year investment plan for the Stefanestii de Jos facility.

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Politics (1)

Rares Bogdan, Robert Sighiartau begin fight for PNL leadership

The "reform group" that seeks to oust Ludovic Orban from the position of National Liberal Party (PNL) leader has started taking public positions as the February meeting of the National Council is drawing closer. The National Council is expected to decide on a date for the upcoming party congress, which will elect the new leader.

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Social (2)

State put almost RON 100 million in orphans' savings accounts

Over the past two years, the Ministry of Labor and Social Protection deposited almost RON 100 million in the Junior Center individual savings accounts.

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Romania ranks at bottom of diseases prevention spending index

Only 1.4% of Romania's health spending goes to prevention measures, half of the European Union average, according to Eurostat. When it comes to per capita spending, Romania shares the last place in the European index with Slovakia.

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