News

Daily Newsletter - 20 March 2020

Summary

Macroeconomic News (3)

Cabinet allocates RON 7.5 million for garlic production

The Cabinet approved at Wednesday's meeting an order regarding the aid for the garlic production support program. The estimated cost of the aid program is up to RON 7.5 million, which would be allocated from this year's budget.

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Inflation fell in February

Romanian dropped from the second place to the sixth place in the EU inflation index, with an inflation rate of 2.9% per year in February. The index is still dominated by Central and Eastern European countries whose currency floating policy is similar to Romania's.

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Automotive market plunged 27% in February

The national automotive market dropped in February for the second consecutive month this year. This time the contraction rate was a very significant 26.9% year-on-year, according to DRPCIV data centralized by the Automotive Producers and Importers Association. The overall drop for the first two months of the year is 20.2%.

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Financial News (3)

BNR throws more than EUR 400 million on market

Banking market sources said the National Bank of Romania (BNR) threw between EUR 400 and 500 million on the market yesterday in order to defend the national currency. On the other hand, the Ministry of Finance failed to borrow anything from the banks this week. The high foreign volatility is putting pressure on the RON/EUR pair.

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Credit Europe Bank offers option to postpone mortgage installments

Credit Europe Bank, a lender with a market share below 1%, is offering clients affected by the coronavirus pandemic the option to postpone mortgage installments. All applications from retail clients will be analyzed and resolved on a case by case basis.

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FNGCIMM supports loan restructuring measures

FNGCIMM encourages partner lenders to provide payment deferral facilities over a period of 1-3 months in order to support vulnerable beneficiaries during these times. The measure is intended to prevent the accumulation of arrears on installments for the loans guaranteed under the "Prima Casa" program, as well as avoiding the execution of guarantees.

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Legislative News (1)

PSD working on installments bill

MPs from the Social Democratic Party (PSD) are working on a bill that would let those who cannot afford to pay their loan installments, both private individuals and companies, to suspend all payments to the commercial banks. The measure would apply to all loans contracted before March 19, 2020.

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Politics (1)

President Iohannis praises unanimous vote

President Klaus Iohannis said the unanimous passing by the Parliament of the decree implementing the state of emergency shows "the responsibility and solidarity of the entire political body, which understands the gravity of the situation" facing the country.

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Social (1)

Vacation for parents as long as schools stay closed

The Cabinet approved on Wednesday the mechanism for granting leave to parents who supervise children under the age of 12 as long as schools stay closed. Leaves are granted only after all other options have been exhausted. Parents must still continue their work activities, including through the implementation of flexible solutions.

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