News

Daily Newsletter - 22 February 2021

Summary

FIC Daily Newsletter | 22.02.2021
FIC (1) || Macroeconomic (3) || Financial (3) || Investment (2) || Legislative (1) || Politics (2) || Social (1)
Foreign direct investments in Romania are on a downward trend

A research conducted by the Foreign Investors Council, together with Bucharest’s Academy of Economic Studies shows that foreign direct investments in Romania are on a downward trend. Under these circumstances, the Foreign Investors Council has emphasized that attracting larger volumes of foreign direct investments, by increasing absorption capacity and by developing medium and long-term strategies based on economic realities should be among Romanian authorities’ priorities. Ramona Jurubita, FIC President discussed about Romania's competitiveness compared to other countries in the region, the legislative framework from the perspective of attracting these foreign investments, what kind of FDI would bring more value added to our economy and how to attract such investments.

Romania could adopt the euro in 2027 or 2028
Romania could adopt the euro in 2027 or 2028 and, if it obtains a favorable Cooperation and Verification Mechanism (CVM) report, it could even join the Schengen Area in 2021, Prime Minister Florin Cîțu stated on Digi24 TV station. Prime Minister Cîțu believes that Romania’s access to the Exchange Rate Mechanism (ERM) II, the Eurozone antechamber, is possible in 2024-2025.
Labor Minister spoke about 2021 budget
Labor Minister Raluca Turcan has stated that restoring macroeconomic balances is essential for Romania and 2021 budget will contribute to achieving this objective. According to the Minister, an economy based on healthy economic growth (investments/exports) will generate, in the future, more resources that can be subsequently redistributed into the society.
Government allocated RON 1 billion to compensate the HoReCa sector
The Government allocated RON 1 billion to compensate the HoReCa sector, amid the crisis generated by the Covid-19 pandemic. Economy Minister Claudiu Năsui announced on Saturday that an ordinance “much awaited” by the HoReCa industry regarding the way payments would be made had been approved by the Government. The official added that compensatory measures would be equally applied and that eligible entities would receive money regardless of when they had submitted a request in this direction.
NBR has attracted RON 4.5 billion deposits from the market
The National Bank of Romania (NBR) has attracted RON 4.5 billion deposits from the market, which banks made at the central bank, at a 1.25% key rate. This is the first such operation since 16 March 2020 up to present. Back then, such operations were performed at a 2.5% monetary policy rate.
Ministry of Finance borrowed RON 430.2 million
Banks did not participate in Friday’s non-competitive bid session corresponding to the tender on Thursday, when the Ministry of Finance (MF) borrowed RON 430.2 million, according to data transmitted by the National Bank of Romania (NBR). The nominal value of the issue was RON 500 million, and banks submitted RON 460.2 million bids.
BSE gained RON 145.8 million capitalization
Last week, Bucharest Stock Exchange (BSE) gained RON 145.8 million, 0.08% respectively, capitalization, and the value of transactions with shares dropped 8.23% compared to the previous week. Banca Transilvania shares were the most liquid stocks on the main segment of Bucharest Stock Exchange, having generated RON 28.935 million transactions, but having also recorded a 3.06% price decrease.
European Funds Minister has announced investments for afforestation
European Funds Minister Cristian Ghinea has announced that the ministry he leads plans to allocate EUR 1 billion from European funds for afforestation. He considers that Romania’s performance in terms of afforestation has been “absolutely catastrophic” in the past 15 years and that a legislative change is needed in the sector, as the legislative framework is “completely inadequate”.
Iaşi County Council president announces tens of millions of euro investments in the airport in Iaşi
Iaşi County Council president Costel Alexe has announced that tens of millions of euro investments will be made at the airport in Iaşi in the following years, pointing out that the citizens of Iaşi will practically have a new airport by 2023. He has added that the current County Council leadership will focus on bringing a larger number of flights to Iaşi and on increasing the number of passengers transiting the airport in the city.
PSD submitted a draft law on livestock manure
Local public administration authorities could be compelled to implement livestock manure collection and storage systems starting from 1 January 2022, according to a draft law submitted to Parliament by three Social Democratic (PSD) deputies. Individuals or legal entities generating manure would thus have the obligation to deposit this type of waste in the spaces indicated by the local authority or deliver it to authorized operators to allow its collection.
PSD to file amendments to draft 2021 State Budget Law
PSD First Vice-President Sorin Grindeanu has stated that the Social-Democrats will file amendments to the State Budget Law in several sectors, from healthcare to education, from agriculture to environmental protection and to the social sector. Mr. Grindeanu has announced that, among other things, PSD will propose allocating funds for the local healthcare centers the party promised to create during the election campaign, increasing the sums allocated to cults, but also granting a sum of money upon the birth of each child.
Iaşi County Council president Costel Alexe has stated that there is no reason for him to step down
Iaşi County Council president Costel Alexe has stated that there is no reason for him to step down, after the National Anti-Corruption Directorate (DNA) launched criminal prosecution proceedings against him, pointing out that, if he is indicted, he will prove his innocence before the court of law. When asked whether DNA’s investigation in his case was affecting the image of Iaşi County, as well as that of the National Liberal Party (PNL) county organization he leads, Costel Alexe answered that knowing one was the object of a criminal investigation was unpleasant for any person.