News

Daily Newsletter - 22 July 2020

Summary

Macroeconomic News (4)

Young farmers must meet three conditions to tap PNDR money

Young farmers who successfully apply for funding through the National Rural Development Program 2014-2020 (PNDR) must set a series of targets in their business plans and meet three conditions within a maximum of nine months from the day the financing contracts are signed, according to the Rural Investment Financing Agency (AFIR).

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Cereals exports reached almost EUR 1 billion

Romania exported EUR 988.7 million worth of cereals in the first four months of 2020, up 38.8% compared to the corresponding period of the previous year, according to data centralized by the National Statistics Institute (INS). On the other hand, cereal imports amounted to EUR 236.8 million (+48.3%), resulting in a surplus of almost EUR 752 million.

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Higher taxes almost inevitable next year

Romania's fiscal position remains its main vulnerability, given that the burden of social and payroll spending has reached an all-time high in relation to revenues (83%), according to an analysis conducted by ING Bank economists. In this context, an increase in taxes is almost inevitable in 2021, once the elections are over.

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Romania to get EUR 79.9 billion in EU funds

President Klaus Iohannis said on Tuesday, at the end of the European Union summit in Brussels, that Romania has obtained an impressive amount - EUR 79.9 billion - funds that will be used to restore the country's infrastructure. The president added that the agreement reached by the EU leaders is extremely important for Romania.

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Financial News (3)

Top 10 banks - 2008 to 2019

Seven of the banks that made the top 10 in 2019 managed to gain ground between 2008 and 2019, while three banks lost market share. Volksbank and Bancpost, which ranked third and eighth in 2008, respectively, were both taken over by Banca Transilvania, two transactions that helped BT become the leading lender in the country.

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BNS against additional labor taxes

The National Labor Bloc (BNS) rejected in strong terms any intention to increase the tax burden on labor income in order to fund the 40% pension boost scheduled for this autumn. "We warned, both in 2017 (when the politicians in power at the time passed the bill shifting the entire burden of financing the pension system to employees) and in 2019 (when the new pension law was adopted) about the fact that these risky and insufficiently substantiated measures only serve to pit one social category against another," said BNS.

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CEC Bank begins upgrading ATM network

CEC Bank, the lender with the longest tradition and the largest territorial network in Romania, is launching a comprehensive multi-annual program to modernize its infrastructure of ATMs and multifunction payment machines, in an effort that will allow the implementation of modern technologies and compliance with the best international practices, according to an official press release.

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Investment News (2)

Ministry of Environment launched two tenders

The Ministry of Environment, Waters and Forests (MMAP) launched this month two tenders for awarding the construction contracts for investment projects scheduled to begin in 16 communes. The contracts focus on 17 manure storage platforms, plus a composting station. All investment projects are financed by the Government using a World Bank loan.

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Senate approves Union Highway project

The Senate passed the bill including Decree 105/2020, which amends Law 291/2018, regarding the Iasi-Targu Mures Highway investment target, also known as the Union Highway. The Social Democrats introduced an amendment changing the completion deadlines for the two highway sections.

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Legislative News (2)

Companies making cash transactions worth at least EUR 10,000 must designate money laundering prevention person

A recent modification of Law 129/2019 has expanded the duties of designating one or more individuals to supervise and implement the money laundering prevention regulations at companies that sell goods worth at least EUR 10,000.

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Unemployment aid up

The Senate passed a bill changing the method used to calculate the unemployment aid. According to the bill, the unemployment aid will be based on 100% of the Social Reference Indicator (ISR), instead of the current 75%. The bill is now on its way to the Chamber of Deputies.

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Social (2)

Number of new COVID-19 cases surges

The Strategic Communication Group (GCS) announced 994 new cases of COVID-19 on Tuesday, pushing the total number of confirmed cases to 39,133. 24,454 cases have been cured so far, while 2,612 asymptomatic patients were discharged ten days after being detected.

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Students are bored, tired, sad and angry at home

Boredom was the main mood experienced by children (47.5%) after the schools closed in March, followed by fatigue (32.7%), sadness (27.1%) and anger (23.2%), according to a Save the Children survey. Almost half of the children surveyed do not have access to a tablet or a computer, the only devices that allow them to actually take part in online classes.

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