News

Daily Newsletter - 2 July 2020

Summary

Macroeconomic News (4)

EUR 12.5 million in new funds for Romanian farmers

The European Bank for Reconstruction and Development and the European Investment Bank are offering Romanian farmers a total of EUR 12.5 million in new funds. The loans are meant to help local farmers overcome the effects of the coronavirus pandemic.

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Florin Citu: This year's economic contraction will range between 2% and 3%

The second quarter of this year had a worse than expected negative impact on the economy, but the overall contraction will range between 2% and 3% for the entire year, according to Florin Citu, the Minister of Finance. "We are outside those apocalyptic estimates indicating a contract of 6%, 8% or 9%. It's not going to be that bad," said Citu.

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Orban Cabinet wants to invest EUR 400 million in agriculture, EUR 3.4 billion in irrigation infrastructure

The Orban Cabinet is promising, through the Economic Recovery Plan, EUR 400 million worth of agriculture investment, plus EUR 3.4 billion for the irrigation infrastructure, 8 regional storage facilities, and support for entrepreneurs and young farmers.

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Economic recovery plan: 100 billion in 10 years

Prime Minister Ludovic Orban will launch the National Investment and Economic Recovery Plan, practically a government program spanning the 2020-2030 decade. According to the document, the Orban Cabinet proposes, in principle, to change the national development paradigm from consumption to economic growth focused on stimulating and developing domestic capital and the competitiveness of Romanian companies, investment in strategic areas of public infrastructure, digital transformation of the economy and public administration, preparing the economy for the new technological revolution, and the transition to a sustainable economy.

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Financial News (5)

BRCI returns to retail banking market

The Romanian Loan and Investment Bank (BRCI) announced on Wednesday that it is planning to open ten branch offices in major cities in the near future. The first new office was opened in Galati, part of the bank's strategy to return to the retail banking market.

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Most banks saw slight equity gains in 2019

The top three banks - Banca Transilvania, BCR and BRD - account for 50% of all the banking equity reported at the end of 2019, which stood at RON 44.2 billion, down 0.6% from 2018, according to the National Bank of Romania (BNR).

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Cabinet to update "Prima Casa" program

The Cabinet will update the guarantee budget of the "Prima Casa" program in order to take into account the rising cost of real estate, according to Prime Minister Ludovic Orban. In early April, President Iohannis signed into law a bill turning the "Prima Casa" program into the "A House for Every Family" social program, which would limit the scope of the program to people of modest means.

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Ministry of Finance to issue retail bonds

The Ministry of Finance will launch today four issues of state bonds for retail investors, under the "Tezaur" Program. The bonds bear interest rates ranging from 3.5% to 4.75% per year, depending on maturity, and will only be available for purchase in July.

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BNR's currency reserves down EUR 600 million

The foreign currency reserves managed by the National Bank of Romania (BNR) reached EUR 35 billion on June 30, down 1.8% from the previous month. June inflows amounted to EUR 3.6 billion, while outflows totaled EUR 4.24 billion.

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Investment News (1)

Progresului Market modernized under RON 12 million program

Bucharest's Progresului Market was modernized under an investment project worth RON 12.8 million. The market is now one of the most modern food markets in the city.

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Legislative News (2)

CCR issues opinion

Imposing a quarantine through a minister order represents a "deprivation of liberty" and a "restriction of fundamental rights", according to the opinion issued by the Constitutional Court. The court had ruled unconstitutional the Minister of Health's order implementing measures to fight the COVID-19 pandemic.

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Cabinet to issue decree regulating new SME program

The Cabinet discussed on Wednesday the draft decree regulating the leasing guarantee program for small and medium-sized enterprises, according to Ionel Danca. The program would guarantee 80% of financing for IT equipment and 60% for other equipment, with a cap of RON 5 million per beneficiary.

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Politics (1)

Orban: Politicians should leave the swamp of demagogy and populism

Prime Minister Ludovic Orban said yesterday that politicians should leave the swamp of demagogy and populism and stop promising everything, while offering nothing.

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