News

Daily Newsletter - 26 June 2020

Summary

Macroeconomic News (3)

Cabinet promises massive investment for economic recovery

A paradigm shift in budget allocations would be a starting point. Romania is not a welfare state, as many believe. It ranks last in the EU in supporting the poorest of us, but because budget revenues, as a percentage of GDP, are low, social assistance allocations seem huge. A rethinking of how scarce resources are allocated would do much good.

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Insolvencies down almost 38%

The number of companies and self-employed individuals filing for insolvency dropped 37.94% in the first five months of this year, compared to the corresponding period of 2019, according to the National Trade Registry Office (ONRC).

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Farmers want government to speed up compensations

"Romanian farmers are going through a particularly difficult period of crisis, triggered by blockages caused by the global coronavirus pandemic and amplified by the severe drought that has been affecting the country since last August, with dramatic implications for the agri-food sector - especially severe resource and production potential constraints - and we urge [the Government] to turn your attention to identifying urgent financing solutions, given that most Romanian farmers can pay for inputs only after selling their crops," according to an open letter from AAC.

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Financial News (2)

Business and retail loans fall

Retail borrowing dropped in May for the second consecutive month. This is the first time such a thing happens in the last four years. Corporate loans dropped enough to cancel the gains made since last August. The banks expect the demand and offer of loans to continue falling during the pandemic.

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Overdue loans fall

The total value of overdue RON-denominated retail and corporate loans amounted to RON 4.74 billion, in May 2020, down 4.64% compared to the previous month, while overdue foreign currency loans fell 1.58%, to RON 2.43 billion, according to BNR data.

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Investment News (1)

Romgaz drafted investment five-year strategy

Mihaela Toader, head of Strategy, International Relations, and European Funds at Romgaz, said the company has a RON 15 billion investment strategy for the next five years. The purpose of this strategy is to diversify its activity, based on the European Union's requirements to cut down on carbon emissions.

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Legislative News (1)

CCR issues mixed ruling

The Constitutional Court ruled on Thursday that the Cabinet does not need Parliament's approval to set up or extend the state of alert. CCR also decided that the isolation, quarantine and internment of those who come to Romania from the so-called red zones cannot be imposed by minister order.

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Politics (2)

PNL deputy blames PSD for COVID case increase

Florin Roman, the leader of the National Liberal (PNL) deputies said the Social Democratic Party (PSD) is the main culprit for the increase in the number of COVID cases, because it questioned the disease, challenged the issuing of fines, and criticized the restrictive measures.

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Cabinet sets local election date

The Cabinet adopted at Thursday's meeting a bill setting the local election date for September 27. The Minister of Internal Affairs, Marcel Vela, confirmed the announcement.

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Social (1)

Cabinet allocated RON 20 million for buildings facing major earthquake risk

At Thursday's meeting, the Cabinet approved RON 20 million for buildings facing major seismic risks. The Action Program for 2020 regarding the design and implementation of intervention works for the reduction of seismic risk for buildings with multi-storey housing belonging to seismic risk Class I was approved by the Romanian Government.

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