News

Daily Newsletter - 29 July 2020

Summary

Macroeconomic News (3)

Innovative companies' turnover - almost 30% of total

The percentage of innovative enterprises increased by 4.4 percentage points between 2016 and 2018, compared to 2014-2016, and 4,198 companies carried out innovative activities out of a total of 28,776 enterprises, according to data published by the National Statistics Institute (INS) on Tuesday. The turnover of innovative companies was RON 284.22 billion in current prices, representing 29.4% of the total turnover of all companies.

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Minister of Finance says budget deficit reasonable

The budget deficit for the first six months of this year is a reasonable one, given both the local and the European economic situations, according to the Minister of Finance, Florin Citu. "Half of the deficit, about RON 23 billion, represents the fiscal measures we took [...]. These sums are money left to companies, to keep the economy running, through those fiscal measures we took. Covid expenses are RON 5 billion, directly related to Covid," noted Citu.

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Ministry of Agriculture to expand irrigation system

Romania wants to reach 3.2 million irrigated hectares under the 2021-2027 budget, taking into account the substantial funds that will be allocated by the European Union, according to a statement from the Ministry of Agriculture and Rural Development (MADR).

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Financial News (3)

Banca Transilvania close to taking over Garanti

Banca Transilvania is close to taking over Garanti Bank, one of the top 10 banks in the country, based on the value of its assets. This move should push BT's market share above 20%, as the Cluj-based bank seems poised to beat both OTP and Intesa Sanpaolo Bank, the other lenders interested in Garanti.

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Number of savings accounts opened by clients through ING's Home Bank up 144%

ING Bank Romania saw a 144% increase in the number of savings accounts opened by clients in the second quarter of 2020, compared to the corresponding period of last year.

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ZF Bankers Summit 2020

"There is a decrease in the use of cash, which is corroborated by an accelerated increase in card payments. What I think will help electronic payments a lot is biometrics as an authentication method for both contactless and online payments. The base is small, but the growth trend is very good," said Cosmin Vladimirescu, Country Manager Mastercard.

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Investment News (1)

EUR 235 million for natural gas networks

A press release issued by the Ministry of European Funds (MFE) states that EUR 235 million worth of European funds will become available on August 17 for projects focusing on the development of local natural gas distribution networks.

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Legislative News (1)

Trans fat content capped

Food companies, both producers and vendors, will be forced to observe a cap of 2 grams of trans fats per 100 grams of fat in the content of their goods. The regulation will come into force on April 1, 2021.

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Politics (2)

Ciolacu: Mr. Orban's responsibility is clear

Marcel Ciolacu, interim leader of the Social Democratic Party (PSD), said on Tuesday evening that the Cabinet is responsible for organizing the elections. Ciolacu added that he had not discussed the issue directly with the prime minister.

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Orban: We are analyzing the reason why the election date decision was challenged

Prime Minister Ludovic Orban said yesterday that the National Liberals (PNL) are analyzing the reason why the election date decision was challenged at the Constitutional Court.

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Social (2)

Four scenarios for new school year

The latest version for beginning the school year features four options, two of which are hybrid solutions. The opening date of the new school year remains unchanged - September 14. According to the document drafted by the Ministry of Health, the County School Inspectorates, DSPs and principals will decide which scenario applies to each school.

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Masks mandatory in open spaces

Wearing protection masks will be mandatory in open public spaces, while the outdoor areas of restaurants and bars will be closed between 11 PM and 6 AM, according to the decisions taken by the authorities at a time when the number of new cases passed 1,100 per day.

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