News

Daily Newsletter - 3 November 2020

Summary

Macroeconomic News (3)

Downgrading Romania's debt to junk would push borrowing cost to 7%

Losing control of the pandemic would greatly complicate the situation - individual responsibility is therefore enormous for each of us. Even so, despite the difficulties it faces, primarily due to chronic budget deficits, the state must continue to support companies, because without the private sector, the economy is dead, according to Claudiu Vuta, economic analyst, member of the AAFBR.

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Finance Minister says economic recovery certain

"Beginning with the third quarter, the economic recovery is certain. This scenario that we followed from the beginning, and I told you to have confidence that we will see a recovery of the economy in the third quarter, a V-shaped recovery, is the basic scenario for everyone, including the rating agencies. I said from the beginning that we are a responsible Cabinet, that we are not a populist Cabinet and this rating proves it, confirmed by the two rating agencies," said Minister of Finance, Florin Citu, on Monday.

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Budget revision to be ready in second week of November

The Ministry of Finance will prepare the budget revision, which could be ready in the second week of November, Minister Florin Citu said on Monday. The top priority is to prevent the worsening of the deficit announced in August. Budget revenues are high enough that the Cabinet is confident it can prevent the further deterioration of the deficit. The main targets for this year are healthcare, investment, and ensuring Romania's financial independence.

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Financial News (4)

BNR's currency reserves up 3.7%

The National Bank of Romania's (BNR) reported foreign currency reserves worth EUR 33.79 billion at the end of October, up 3.7% from September. The gold reserves remained at 103.6 tons, worth EUR 5.35 billion at the current international price.

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New mortgages reached RON 1.26 billion in September

The value of new RON-denominated mortgages amounted to RON 1.26 billion in September, up 4% compared to the corresponding month of 2019 and the second best figure this year.

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Third of Raiffeisen branch offices no longer use cash

Raiffeisen Bank announced that approximately a third of its branch offices will join the cashless trend this month. All cash operations will be conducted exclusively at the MFM/ATM machines available in every branch office. Dozens of other branch offices will handle cash operations on a short work schedule basis.

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BCR earnings up

BCR posted RON 845.8 million in earnings for the first nine months of this year, a huge increase from the RON 348.8 million logged for the corresponding period of 2019. The operating revenues jumped 1% to RON 2.61 billion. Last year's earnings were affected by the mandatory establishment of a provision related to BCR Banca pentru Locuinte.

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Investment News (1)

CTP opens 56,500 sqm logistic facility in ctPark Bucharest West

CTP, the largest developer and long-term manager of industrial and logistics parks in Central and Eastern Europe, continues its expansion plans with the inauguration of a new logistic facility, which was leased by retail chain Profi. The new warehouse is housed by ctPark Bucharest West and it allows food products to be stored in three temperature categories.

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Legislative News (1)

President signs extended property confiscation bill

President Klaus Iohannis signed on Monday the extended property confiscation bill. The extended confiscation will apply to the goods acquired by an individual 5 years before being handed a prison sentence.

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Politics (2)

PM met US Ambassador, Bucharest Mayor

Prime Minister Ludovic Orban met on Monday with the US Ambassador to Romania, Adrian Zuckerman, and the Mayor of Bucharest, Nicusor Dan. Orban voiced the Cabinet's firm decision to support every important project for Bucharest.

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PNL leads new poll

More than 32% of voters would support the National Liberals (PNL), according to a survey released on Monday by PMP leader Eugen Tomac. 28.6% would back the Social Democrats (PSD), 17.5% - USRPLUS, 7.4% - PMP, and 5.4% - Pro Romania.

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Social (1)

1 million students attend classes online

About a million children study online, according to the Minister of Education and Research, Monica Anisie. This means approximately a third of Romania's students. In reality, the Ministry is receiving more and more reports that online courses are not actually being held. The school inspectors were asked to step up the monitoring of online classes.

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