News

Daily Newsletter - 2 October 2020

Summary

Macroeconomic News (4)

EBRD more pessimistic about Romanian economy

The European Bank for Reconstruction and Development has adjusted downward its estimates regarding Romania's economic evolution in 2020 and 2021, as a result of the crisis caused by the COVID-19 pandemic, according to a report. The Romanian economy will contract 5% this year, compared to the 4% estimated in May, followed by a 3% expansion in 2021.

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MADR paid RON 850 million to farmers

The Minister of Agriculture, Adrian Oros, announced that farmers affected by the drought had been paid RON 850 million. The Cabinet has also adopted a draft order approving the direct acreage payments and the ceiling for the livestock aid program.

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Budget revenues up 9% in August

The state budget's revenues were RON 2.1 billion higher in August, compared to the corresponding month of 2019. However, the overall revenue figure for the first eight months of the year is still RON 2.8 billion lower on an annual basis.

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Industrial production prices down

The total industrial production prices (domestic and foreign market) decreased by 0.2% in August, compared to July, and by 0.7% compared to the corresponding month of 2019, according to INS data.

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Financial News (4)

Banca Romaneasca joins SME grant program

Banca Romaneasca has started implemented the three measures of the SME aid program launched under the Competitiveness Operational Program (POC), following the signing of the cooperation convention with the Ministry of Economy. The program is worth EUR 1 billion.

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BCR, BRD and Raiffeisen complete CIT One transaction

BCR, BRD Groupe Societe Generale and Raiffeisen Bank completed the transaction giving them equal stakes in CIT One, one of the biggest cash processing and storage company in Romania. At the end of 2019, BRD and Raiffeisen bought 33% stakes in CIT One, which up to that point had been fully owned by BCR.

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Borrowing could recover in 2021

Central and Eastern European banks expect a recovery of lending in 2021, with the help of support measures from regulators in the field, after a significant contraction in 2020, according to a study regarding the impact of COVID-19 on the CEE banking sector conducted by Deloitte in 12 countries in the region, including Romania.

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BNR: IRCC was uninspired decision

The consumer loan reference index, IRCC, is higher than the ROBOR rate because the decision to modify it led to the calculation of interest rates from six months ago. Dan Suciu, spokesman for the National Bank of Romania (BNR), said the decision had been a political one.

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Investment News (1)

Corina Oprisiu, Avis 3000: We're investing EUR 2 million in store modernization

Avis 3000 explained that it cannot compete with the chicken breast that is imported in Romania at less than EUR 1 per kilogram, despite the difference in quality. The group will invest EUR 2 million in modernizing and expanding its own stores, as well as expanding two farms.

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Legislative News (1)

Senate: Developers with earnings above RON 1 million to finance down payments

The Senate passed on Wednesday a bill establishing the "Houses for Young Romanians" Solidarity Fund, which will be financed by real estate developers. The proposal stipulates that the solidarity fund will finance the down payments that young Romanians need to pay to buy houses.

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Politics (2)

Barna: There's no need to cancel the election

Dan Barna, co-president of USR PLUS, said on Thursday that there's no reason to cancel Bucharest's recent mayoral election and that he doubts the Central Electoral Bureau (BEC) would take such a decision. "The result is known and clear. There's no reason to cancel the election," said Barna.

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Ciolacu: PSD is going the right way

Marcel Ciolacu, leader of the Social Democratic Party (PSD), said on Thursday evening that the PSD is going the right way and that Romanians are once more trusting the party and its messages.

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Social (2)

Eurostat: More than 15% of Romanians aged 18 to 24 dropped out of school in 2019

Around 15.5% of Romanians aged 18 to 24 dropped out of school in 2019, according to Eurostat. The highest figure was reported in 2015: 19.8%. The transition from education to work is very difficult for individuals with low education levels, for those who leave education early and for those belonging to disadvantaged backgrounds.

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Unemployment rate down 0.1 pp in August

The seasonally adjusted unemployment rate was 5.3% in August, down 0.1 percentage points compared to July, the National Statistics Institute (INS) announced on Thursday.

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