News

Daily Newsletter - 3 September 2020

Summary

Macroeconomic News (2)

Biggest problem of local business community: negative net assets

After the official launching of the National Investment and Economic Recovery Plan, the Romanian Government came up with concrete measures for its implementation. These include the approval of the decree which grants bonuses to companies that increase and/or improve their equity.

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Budget deficit to remain high

Ionut Dumitru, Chief Economist of Raiffeisen Bank and former president of the Fiscal Council, has warned that Romania entered a budget deficit and public debt spiral caused by the pre-pandemic policy of raising salaries and pensions without the necessary resources and beyond the economy's growth rate.

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Financial News (5)

Radu Budeanu sold Romprest stake

Businessman Radu Budeanu, founder of the "Ciao!" and "Cancan" magazines and the new owner of the "Gandul" daily, has sold his 13.7% stake in Romprest Services to another shareholder. The transaction was estimated at EUR 9 million.

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Raiffeisen Bank International launches new application

Raiffeisen Bank International has teamed up with US fintech Moxtra to launch a new application called RaiConnect. The app is designed for corporate and premium clients and it allows users to keep in tough with the Client Relations managers, send and receive documents, receive consulting and information on trades, and make video calls.

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Resolution Property and Zeus Capital bought Floreasca Park

Resolution Property and Zeus Capital Management have recently acquired Floreasca Park, a 37,500 sqm office complex located in central Bucharest. The property was sold to the joint-venture set up by the two companies by a fund managed by GLL Real Estate Partners GMBH for an estimated EUR 50 million.

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RON-denominated state bonds added to Bloomberg Barclays Global Aggregate

The state bonds issued by Romania in its national currency were included in the Bloomberg Barclays Global Aggregate index, one of the most popular indexes among the managers of investment funds. The 39 bonds will account for 0.2% of the Global Aggregate Index and 0.5% of the Global Treasury Index.

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Tinmar took direct control over cereals producer

The Competition Council authorized the transaction through which the Tinmar Group, controlled by businessman Augustin Oancea, with major operations in the energy, gas and petroleum products trading and an annual turnover of more than RON 1.6 billion, has taken direct control over cereals producer Intercereal Ialomita. The latter leases 10,550 hectares of farmland from the state and is one of the top 10 beneficiaries of subsidies.

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Investment News (2)

RWEA urges government to add renewable energy projects to MRR

The Romanian Wind Energy Association has sent an open letter to the Cabinet urging the inclusion of renewable energy investment projects into the Recovery and Resilience Mechanism (MRR). The association stated that Romania's energy industry needs more than EUR 22 billion worth of investments over the next ten years to reach the targets set by the European Commission.

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Second Fashion House to open by next spring

Fashion House Group, a developer and operator of outlet stores, will open a second location in Romania by the spring of 2021. The new store will be located outside Cernica. Construction is already underway at the building that would house 59 stores. More than half of the building's 13,000 sqm have already been rented.

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Politics (2)

RON 2,000 month risk bonus for teachers

Marcel Ciolacu and four other PSD MPs filed with the Parliament on Wednesday a bill granting teachers a RON 2,000 per month risk bonus, plus RON 1,500 per month for non-teaching school staff. The bonus would be paid during the state of emergency and the state of alert because these employees are directly involved in the fight against the pandemic.

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PSD and ALDE to push for 40% increase in pensions

Calin Popescu Tariceanu, leader of ALDE, announced that the budget revision decree would be amended by the Parliament's commissions in order to increase pensions by 40%, instead of the 14% offered by the Cabinet.

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Social (2)

Romania's COVID immunization rate is 6%

The Minister of Health, Nelu Tataru, stated that only 3.87% of the approximately 7,832 samples taken from individuals who were cured of the coronavirus featured antibodies. At the national level, 6% of the population gained immunity to the virus.

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Young people cut back on entertainment during state of emergency

Young people cut back on entertainment during the state of emergency, shopped online and became more careful with their money, according to the Insights PulseZ national study. More than 40% of respondents stopped buying holidays, sports equipment, IT&C products and gadgets, while also cutting back on ordering food from the delivery platforms.

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