News

Daily Newsletter - 2 June 2020

Summary

Macroeconomic News (3)

Farmers' proposals for irrigation infrastructure rehabilitation

Over the past three years, the authorities have invested EUR 100 million in modernizing the irrigation infrastructure, with another EUR 50 million scheduled for this year. For the same three years, Romania has been called a country with a huge farming potential, which even led to potential production, given that drought has been a fact of life every year since 2012.

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Number of suspended activity companies down

The number of companies that suspended their activity decreased by 39.43% in the first four months of 2020, compared to the corresponding period of 2019, according to data published by the National Office of the Trade Registry (ONRC).

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More than 10% of restaurants will not reopen

Because they have been closed for two and a half months, more than 5,000 of Romania's 45,000 bars and restaurants will not be able to reopen, according to Daniel Mischie, President of the Hotel and Restaurant Employers Organization in Romania (HORA). Restaurants lost EUR 400 million per month in revenue because of the pandemic.

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Financial News (3)

Key rate slashed to 1.75%

The National Bank of Romania (BNR) has decided to slash the key rate from 2% per year to 1.75%, beginning with June 2. The directors adopted a series of measures at Friday's emergency board meeting, including the reduction of the interest rate for the deposit facility, from 1.5% to 1.25% per year, while maintaining the current minimum reserves.

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CEC Bank posted 26% increase in earnings

CEC Bank, the lender operating the biggest network of branch offices in the country, posted RON 114.1 million in earnings for the first quarter of this year, up 26% year-on-year. Interest revenues amounted to RON 372 million, up 15%, while revenues from fees jumped 13% to RON 73 million.

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Banks lost RON 150 million in earnings

According to the aggregated indicators published by the National Bank of Romania (BNR), the banks' earnings dropped from RON 1.8 billion to RON 1.64 billion in the first quarter of this year, while assets jumped to a new high of RON 518.4 billion.

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Investment News (2)

City Hall restarts property acquisition procedure

The Bucharest City Hall has restarted the acquisition procedure for a property of around 130,000 sqm for a waste management investment project. The City Hall's budget is RON 21.14 million. Bids are expected until June 30 and will be opened on July 1.

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Iulian Dascalu unveils gigantic Romexpo project

The Chamber of Commerce and Industry (CCIR) and real estate developer IULIUS unveiled a mixed use project that would transform the Romexpo Exhibition Center into an economic catalyst with major benefits for the community.

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Legislative News (1)

PSD amends Start-up Nation rules

The Parliament has amended the regulations governing the Start-Up Nation program, before sending it to the President. The amendments eliminated the practice of selling companies as soon as financing is granted by imposing a ban on selling shares, except when consistent with the Business Angel Law.

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Politics (2)

Ciolacu: The election will be held as soon as we're out of danger

Marcel Ciolacu, interim leader of the Social Democratic Party (PSD), said the local and parliament elections will be held as soon as the danger caused by the coronavirus pandemic is gone. Ciolacu believes this will be the case by the end of this year.

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Ciolos: PSD is hypocritical to ask the Cabinet to resign

Dacian Ciolos, President of PLUS, said the Social Democrats are hypocritical to ask the Cabinet to resign over the photo of Prime Minister Ludovic Orban smoking in the Victoria Palace. Ciolos reminded PSD leader Ciolacu that Liviu Dragnea had turned his Chamber of Deputies office into a "smoking room".

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Social (1)

Children vaccination is top priority

Vaccination of children must be a priority during this period, and family doctors must make an effort to reach the children who did not receive their vaccines on time, said Alexandru Rafila, president of the Romanian Society of Microbiology (SRM), on Friday.

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