News

Daily Newsletter - 28 January 2021

Summary

FIC (1)

Business community wants digitization handled by one entity

The Coalition for Romania's Development (CDR) announced in a press release that it urged Prime Minister Florin Citu to establish a single authority tasked with digitizing the public administration and speeding up the process. CDR had its first meeting with Prime Minister Florin Citu and members of the Cabinet, where it put forward the opinions of the business community. "The recipe for achieving common goals: debureaucratization, digitization, transparency and genuine consultation, ahead of time, with business and the civil society", according to a statement issued by CDR.


Business community's proposals to Cabinet

CDR's 2021 wishlist

CDR: We want to see concrete measures

Government promises administration digitization, investment stimulus, increased EU fund absorption

Government promises administration digitization, investment stimulus, increased EU fund absorption

Business community asks for debureaucratization, digitization, transparency, consultation

Business community wants digitization handled by one entity

What needs to be done in 2021?

CDR wants in on PNRR negotiations

Digitization seen as "child with too many midwives"

Dragos Anastasiu: We've passed the 2020 election tsunami and its wave of promises

Dragos Anastasiu: We've passed the 2020 election tsunami and its wave of promises

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Macroeconomic News (2)

Budget targets unchanged

The deficit target for the state budget for 2021 remains at 7%, said Prime Minister Florin Citu on Wednesday. "It is important, through this budget, to maintain the trust we created last year, with the European Commission, with foreign investors, with the rating agencies. That is why this is a very important budget," said Citu after the Cabinet meeting.

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Budget deficit was 9.79% of GDP last year

The government reported a record budget deficit of RON 101.9 billion for last year, 9.79% of GDP, as revenues were suffered from the economic impact of the coronavirus pandemic, while expenditures rose sharply for the same reason, especially from supporting the healthcare system and the business community. According to the Ministry of Finance, a total of RON 46.31 billion (4.45% of GDP) was left in the economy through fiscal facilities, investment and exceptional expenditures made to combat the effects of the COVID-19 epidemic.

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Financial News (5)

Banca Transilvania awarded maximum ARIR score

For the second consecutive year, Banca Transilvania was awarded the maximum score for its communication with investors by the Association for Investor Relations on the Romanian Stock Exchange (ARIR), according to a press release. This year's evaluation included 15 criteria, and the entire process was audited by Mazars.

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Non-government resident deposits up 2.6% in December

Deposits of non-government resident client increased by 2.6% in December, compared to the previous month, reaching a total of RON 420.79 billion. The annualized growth rate was 14.4% (12.1% in real terms), shows the data published by the National Bank of Romania (BNR) on Wednesday.

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Private borrowing up 5.5% in 2020

The value of loans granted by banks to companies and individuals was RON 282.3 billion at the end of last year, up 5.5% compared to 2019 (3.4% in real terms). RON-denominated loans jumped 8.5%, while foreign currency loans fell 0.6%, according to data published by BNR on Wednesday.

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Vista Bank notifies BNR of Credit Agricole acquisition

Vista Bank is currently buying Credit Agricole, but the Greek bank has not taken any steps beyond notifying the National Bank of Romania (BNR) of its intentions. While BNR is waiting for the paperwork it needs to evaluate the transaction, Vista Bank representatives claim the acquisition will be completed by the end of H1, 2021.

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Installment deferral norms approved

The executive adopted in the government meeting on Wednesday the proposal of the Ministry of Finance to continue even after January 1, 2021 the support measures granted to those in difficulty due to the COVID-19 pandemic. The request for suspension of payment obligations may be made by the debtor no later than March 15, 2021, and the creditor must notify the debtor of the decision within a maximum of 15 calendar days, until March 31, 2021.

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Investment News (1)

Segezha Packaging to build new Ploiesti factory, warehouse

Segezha Packaging SRL (part of JSFC System) announced a major investment project that would significantly increase its production capacity in Romania. This will include a new factory and a warehouse, the modernization of existing production lines, and the acquisition of a state-of-the-art production line, according to the group's representatives.

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Legislative News (2)

Labor Minister discussed payroll and pensions with education unions

The correction of the Payroll Law and inequities in the public pension system were the main topics discussed by the Minister of Labor and Social Protection, Raluca Turcan, with representatives of the education unions. The first topic was the draft amendment to the Public Payroll Law, which is supposed to increase predictability and eliminate the existing discrepancies in salaries.

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Big retail chains facing stricter terms and conditions

The big retailers will have to comply with stricter terms and conditions in relation to product suppliers, based on the European Directive on Unfair Commercial Practices. Large chains will have to observe the 7-day deadline for paying suppliers of fresh products, will not be allowed to charge suppliers fees that are not related to the sale of products, give advance notice when canceling orders, and ensure the fair treatment of providers.

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Politics (2)

Romania will continue to call on Belarus authorities to stop repression

Romania will continue to call on the Belarusian authorities, intermediaries, and sponsors to stop the repression and intimidation campaign and to start an honest dialogue, including with the opposition and civil society, said Foreign Minister Bogdan Aurescu on Wednesday.

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PSD's alternative budget focuses on vaccination, economic recovery

Marcel Ciolacu stated that the alternative budget proposed by Social Democratic Party (PSD) focuses on stopping the spread of COVID-19, vaccinating the population, investing in human capital and infrastructure, and getting the economy moving again. The PSD leader also spoke about increasing the tax collection rate and stimulating work.

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Social (2)

Some teachers will be allowed to continue online classes

The Minister of Education, Sorin Cimpeanu, said on Wednesday that teachers who have "medically certified vulnerabilities" will be allowed to teach online. The same applies to children suffering from such vulnerabilities.

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Minister of Health says 30% of vaccination centers not open to public

The Minister of Health, Vlad Voiculescu, has discussed with Prime Minister Florin Citu the possible introduction of penalties against those who cut in line to get vaccinated. More than 1,300 people who are part of the third stage of vaccination have already been immunized, even though there are not enough shots for the elderly and chronic patients belonging to the second stage.

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