News

Daily Newsletter - 25 March 2020

Summary

FIC (2)

FIC: the first set of economic measures taken by the government, a step towards the continuity of the companies in difficulty

"In these days of global disruption, the Foreign Investors Council (FIC) believes more than ever that our interdepency is crucial to our wellbeing. FIC brings together over 120 multinational companies and its mission is becoming more important during times of uncertainty, as we believe that the dialogue between policy makers and the business community lies at the heart of mitigating the risks that COVID-19 poses to the Romanian economy. Protecting our 185.000 Romanian employees was our first action. We rely on them and together we have a turnover of approximately 23% of Romania’s GDP. The first set of economic measures taken by the Romanian Government was a step towards giving companies in distress a lifeline, but there are more steps to be made and we want to share the same road for a better future for all. FIC encourages the authorities to open discussions with all international stakeholders like the Commission, the IMF or the World Bank and to tap into all the available resources in order to ease the strain on the national budget. If needed, FIC members are here to support this dialogue with their expertise and good knowledge of what is happening in the economy. “


FIC Press Release

Press Release

FIC: Planning economic continuity must be done now

FIC urges Cabinet to seek IMF loan

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CDR: The Cabinet's economic measures are insufficient and unclear

The Coalition for Romania's Development (CDR) announced that the Cabinet's economic measures are insufficient and partly unclear, while also failing to address the problems of small companies facing bankruptcy.

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Macroeconomic News (3)

When weak points become strong points

Romania received less than 3 million foreign tourists in 2018, one of the lowest figures in the European Union, much lower than neighboring Bulgaria's 9.3 million, according to the UNWTO - World Tourism Organization.

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Insurance sector takes steps to protect clients

The national insurance sector has taken a series of special measures in order to protect its employees and clients from the coronavirus epidemic, while also making sure that current operations do not grind to a halt, according to a report from industry group UNSAR.

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458,000 labor contracts suspended

262,000 employees have been put on technical unemployment since the beginning of the COVID-19 crisis in Romania. The Ministry of Labor has asked for RON 4 billion from the Ministry of Finance in order to help employers by picking up the technical unemployment tab, according to Violeta Alexandru, the Minister of Labor. 458,000 labor contracts are currently suspended.

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Financial News (5)

BT expects borrowing growth rate to fall to 3.8%

Private lending will see its growth rate slowing down to 3.8% in 2020, from 7.6% in 2019, while private deposits will grow by up to 6%, according to a report signed by Andrei Radulescu, Director of Macroeconomic Analysis at Banca Transilvania.

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Banks exempt from setting up provisions for postponed installments

The National Bank of Romania's (BNR) Supervisory Board held an emergency meeting in order to clarify the implementation of the regulations in force during the COVID-19 epidemic. BNR will make use of regulatory flexibilities in order to allow lenders to help some of their corporate and retail clients in the coming months.

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The amount of money Romania had before the coronavirus crisis - the money supply from February

The broad money supply (M3) reported a balance of over RON 423.5 billion at the end of February 2020, 10% higher (6.8% in real terms) compared to the same month last year and 1.0% higher (0.7% in real terms) compared to January, according to the temporary data announced on Tuesday by the National Bank of Romania. The National Bank of Romania committed on Friday, in its first quantitative easing (QE) campaign, to introducing cash in the financial system by acquiring government bonds.

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ROBOR rate falls

The three-month ROBOR rate climbed from 2.61% to 2.62% yesterday, while the six-month rate plunged to almost a two-year low.

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Government ready to support interest payments

The Government is ready to support part of the interest that retail and corporate clients must pay on their loans, according to statements made by PM Ludovic Orban on Tuesday evening. The PM added that he had held talks with representatives of the banking system to find the best ways to support debtors.

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Investment News (1)

The Minister of European Funds has signed a financing contract worth EUR 201.5 million for potable water and sewerage systems in 25 localities in Bistriţa-Năsăud

The Minister of European Funds, Marcel Boloş signed on Tuesday the financing contract for "The regional project for developing the water and waste water infrastructure in Bistriţa-Năsăud county", financed through the Large Infrastructure Operational Program, a financing contract worth EUR 201.5 million for potable water and sewerage systems in 25 localities in Bistriţa-Năsăud. "The potable water and sewerage systems are basic systems, very important for every one of us. These increase the quality of life and improve the lives of millions of citizens. Today, by signing this investment contract worth over EUR 200 million, we have taken one more step toward building a modern network in Romania, through EU funds", stated minister Marcel Boloş at the signing of the financing contract.

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Legislative News (1)

Military Ordinance 3: Restricted traveling during daytime as well in Romania. The Army will also be used, the elderly can no longer leave their homes

New traveling restrictions will be enforced, the recommendations will become obligations, president Klaus Iohannis has stated. The army will also be used, old people more than 65 years of age will no longer leave their homes.

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Politics (2)

Dan Barna: The decision to impose new restrictions is necessary and welcome/Whether or not we will overcome this crisis depends on the personal responsibility of every one of us as well/The government, on the other hand, must ensure complete transparency

The leader of USR, Dan Barna says on Tuesday that although it is difficult, the decision to impose new restrictions is necessary and welcome. "Whether or not we will overcome this crisis depends not only on the way authorities act, but on the personal responsibility of every one of us as well", thinks Barna, who is asking the Government for transparency when communicating the information regarding coronavirus.

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PM Orban out of isolation

Prime Minister Ludovic Orban and members of the cabinet received the results of the second COVID-19 test, which is negative. The state officials will come out of isolation in order to resume working at the Victoria Palace.

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