Daily Newsletter - 27 January 2021


FIC (1)

Citu: The keyword is efficiency

The keyword is efficiency, especially in this period of constraints caused by the COVID-19 pandemic, Prime Minister Florin Citu said on Tuesday, after meeting representatives of the Coalition for Romania's Development (CDR)."We discussed about predictability and stability in the fiscal field, digitization and simplification of interaction with state institutions, reducing labor market imbalances, stimulating investment and absorption of European funds and transparency in spending money allocated either from the state budget or attracted through European financing programs or through the National Recovery and Resilience Plan."


Macroeconomic News (2)

BNR: Significant uncertainties persist regarding budget consolidation scope and instruments

The directors of the National Bank of Romania (BNR) pointed out that significant uncertainties persist regarding the scope and instruments of budget consolidation this year, as well as in the coming years, at least until the public budget for 2021 is approved. The annual inflation rate will probably increase slightly in the first two months of this year, followed by a correction at the end of the first quarter.


Rating agencies will not downgrade Romania if Cabinet takes convincing budget deficit reduction measures

The rating agencies will not downgrade Romania, provided the Cabinet takes convincing steps to reduce the budget deficit, said CFA Romania analysts attending Tuesday's online conference, where they presented the December figures for the Economic Confidence Indicator. "Our scenario is that Romania will remain 'investment grade', but it depends on the Cabinet convincing the rating agencies that it is taking steps to reduce the budget deficit," said Adrian Codirlasu, vice president of CFA Romania.


Financial News (3)

Intesa Sanpaolo Bank launches special

Intesa Sanpaolo Bank has launched a special deal on its Real Estate and Personal Needs loans. Retail clients who are buying their first home can take advantage of the reduced adjustable interest rate (2.55% + IRCC) if they choose to collect their incomes in accounts opened with Intesa Sanpaolo Bank.


BNR: Slashing key rate to provide stimulus

The National Bank of Romania's (BNR) Board of Directors had decided to slash the key rate to 1.25% in order to stimulate the economy in the context of "necessary budget consolidation", according to the minutes of the January 15 meeting. BNR expects "an important change in the future conduct of fiscal and revenue policy", with positive implications on the sovereign risk premium, as well as the cost of borrowing.


Credit card transactions down 1.5%

In the first nine months of 2020, Romanians made credit card transactions worth RON 9.9 billion, down 1.5% from the corresponding period of 2019, according to data centralized by BNR. Surprisingly, credit card transactions dropped slightly in 2020, even though most activities moved online because of the blockage caused by the coronavirus pandemic.


Investment News (1) announced investments worth EUR 2 million, a company specializing in delivering packages, part of the Packeta group, will double its investment in Romania this year. The company will allocate EUR 2 million to business development and will open two new warehouses in Bucharest and Oradea.


Legislative News (2)

CCR rejects PNL complaint

The Constitutional Court of Romania has rejected the National Liberal Party's (PNL) complaint regarding the amendment to the Leasing Law drafted and introduced by Senator Daniel Zamfir. The bill was passed last October with the backing of the Social Democrats (PSD) and the Magyar party (UDMR).


MFP releases draft decree on direct settlement

The Ministry of Finance (MFP) posted on its website the draft decree regulating the mandatory direct settlement among MTPL insurers. The direct settlement guarantees the client who filed the claim the possibility of asking his or her insurer to recover the damages directly from the guilty party's insurer.


Politics (2)

Ciolacu said PSD would introduce amendments to state budget bill

Marcel Ciolacu, leader of the Social Democratic Party (PSD), announced that the party would introduce amendments to the state budget bill. Ciolacu voiced his hope that the budget would be adopted after a proper debate.


Florin Citu: Romania is fully prepared to join Schengen space

"Yesterday, I had a telephone conversation with the Prime Minister of the Kingdom of Netherlands, Mark Rutte. We analyzed the promising prospects for cooperation between Romania and the Netherlands, focusing on strengthening economic relations and boosting political dialogue. Our legitimate accession to the Schengen space was one of the essential points discussed with Prime Minister Rutte, to whom I conveyed that Romania is, without a doubt, fully prepared to enter the Schengen space," said PM Citu.


Social (1)

EU vaccination situation

The European Union's target of vaccinating 70% of its adult population cannot be reached by autumn, as the European Commission would like. Romania will not achieve this figure before December, 2022, even if its vaccination rate is one of the highest. If the current pace is maintained, only 15% of the European Union's population will be vaccinated by the end of September.