News

Daily Newsletter - 21 July 2020

Summary

Macroeconomic News (3)

Only three SNCDIR goals reached

Romania has reached only three of the 16 goals officially assumed seven years ago at the launching of the National Strategy for Research, Development and Innovation 2014-2020 (SNCDIR), according to a INACO press release. 12 targets are either not reached or, worse, are experiencing an actual regression.

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More than half of local companies say situation is "critical" or "very critical"

More than half of Romanian companies (55%) see the situation generated by the COVID-19 pandemic as "critical" or "very critical", and over a third of them (37%) estimate that the recovery period will range between 12 and 24 months, according to the results of a study published on Monday by a consulting company. 41% of the 440 companies that took part in the survey think the local situation will evolve extremely unfavorably in the coming months.

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Ecological farmers must follow demand

Ecological farming is a niche accounting for 2-3% of Romania's farmland (around 300,000 hectares) and 10,500 companies and farmers. The small number of producers and goods means farmers should focus either toward modern retailers or toward countries that have some tradition with bio products.

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Financial News (4)

40% of vulnerable Romanians attracted by illegal financial schemes

The money mule phenomenon is very well known in Romania and a new study by ING Bank Romania, entitled "Vulnerabilities of Romanians Regarding Personal Data Fraud" notes the opinions and the degree of penetration of this practice among Romanians. Nine out of 10 Romanians say they are not willing to be money mules and eight out of 10 believe that this activity is punishable by prison, while four out of 10 would accept jobs that require them to open or use their accounts and make transfers, jobs that involve the least amount of effort while providing a quick revenue.

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ANAF to build registry of local accounts

The National Fiscal Administration Agency (ANAF) will build a registry containing the account and payment information of all legal and natural persons in Romania. The registry will be available to all the authorities involved in the fight against money laundering and terrorism financing.

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FNGCIMM launches fourth program

The National Loan Guarantee Fund for SMEs (FNGCIMM) announced on Monday the launching of the fourth government aid program: SME Leasing - Equipment and Machinery. FNGCIMM is diversifying its range of guarantees in order to help SMEs gain access to financing through the new program for equipment and machinery.

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Raiffeisen Bank opens first "New Generation" branch office in Cluj-Napoca

Raiffeisen Bank is opening the first "New Generation" branch office in Cluj-Napoca. The bank's Regional Business Center, located in the same city, was also the target of a makeover in order to fit the new concept. "We want long-term partnerships with our clients and, therefore, transparency, openness and a more familiar and welcoming atmosphere are essential elements for any interaction in our offices, whether personalized financial advice or digital education," said Monica Udrescu, Executive Director of the Retail Network.

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Investment News (2)

Continental invested EUR 27 million in modernizing R&D center

Continental Romania has completed the expansion of its R&D center in Iasi, a project that cost EUR 27 million, according to an official press release. The new building has 8 floors and can accommodate up to 1,700 workers. It includes a fully functional testing and validation area for products.

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Craiova City Hall to spend EUR 23 million on modernizing three hospitals

Craiova City Hall announced that three hospitals in the city will receive modern equipment, designed to fight the coronavirus, under an investment project worth about EUR 23 million. The City Hall said in a press release that the three medical units - Victor Babeş, Philanthropy and Neuropsychiatry - will be given the best equipment and will have everything they need to fight the coronavirus.

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Legislative News (1)

Oil companies unhappy with farmland law

The Romanian Petroleum Exploration and Production Companies Association (ROPEPCA) has urged the authorities to revise the law regulating the selling of farmland, warning that this law could block investment. The amended version of the law stipulates that farmland can only be sold to farmers or farming companies.

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Politics (2)

PM supports two-day election proposal

Prime Minister Ludovic Orban said on Monday that he agreed with the proposal to hold local elections over two days in order to avoid overcrowding at the polls. "I think it's a good idea. There was an amendment. We can't change the law if the date and manner of holding the elections are set by law. In order to have two days, a legislative change is needed. For my part, I support the two-day idea," said the PM.

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PSD accuses president, PM of hiding behind pandemic

The Social Democrats accused PM Orban of using the pandemic as a pretext to avoid the local election because both Orban and President Iohannis know they will lose.

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Social (1)

Drugmakers: No coronavirus vaccine this year

There will be no effective treatments and vaccines against coronavirus this year, but "a healthcare and economic catastrophe" can be avoided in the coming months, and especially in the cold season, by wearing masks, practicing social distancing, and maintaining hand hygiene, say representatives of employer organization PRIMER.

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