News

Daily Newsletter - 31 July 2020

Summary

Macroeconomic News (4)

Budget deficit correction to be Romania's biggest challenge

The big macroeconomic challenge in the coming years is the correction of the budget deficit and the macroeconomic imbalance, and European funds will play a key role in facilitating the correction, according to Daniel Daianu, adviser to the BNR governor. "Those referring to loans should note the cost of financing required by Romania's markets now and the repayment period. Net grants will be EUR 42-43 billion, with EUR 16.8 billion coming from the Recovery Plan. 70% of the money in this plan should be used between 2021 and 2023, with the possibility that 10% can be drawn in advance in 2020," said Daianu.

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State's tax revenue up 150% in June

The state's revenues from the profit tax surged 152% in June, compared to the corresponding month of 2019, reaching a total of RON 630 million, according to the six-month budget report published by the Ministry of Finance. Alexandra Smedoiu, a Deloitte partner, said some companies took advantage of the discount offered by the state, while others paid their taxes without waiting for the state to extend the deferral period.

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Number of unemployed up

The seasonally-adjusted unemployment rate remained at 5.2% in June, same as the previous month, according to the National Statistics Institute (INS). However, the number of unemployed increased by 4,000, compared to the previous month, and by 124,000 compared to the previous year.

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Online transactions up 44% in Romania

The number of online transactions increased by 44% in the first six months of the year, compared to the corresponding period of 2019, while the value of orders jumped 62% in the same period, according to data centralized on MerchantPro, the local SaaS eCommerce platform. The value of the average order is up 12%.

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Financial News (3)

Mastercard and BRD launch Octet Europe platform in Romania

Mastercard Romania and BRD - Groupe Societe Generale announced the local implementation of the Octet platform, a SME-oriented solution launched by Mastercard at the beginning of this summer under the name of Mastercard Trade Solution. The Octet platform helps SMEs expand their operations globally, ensuring payment security, managing cash flows, and supporting SMEs, an extremely important and severely affected economic sector during this period.

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Garanti BBVA posts almost 4% increase in revenues

The Garanti BBVA bank reported RON 209.1 million in net revenues for the first half of this year, up almost 4% on an annual basis, while the earnings reached RON 55.3 million. The Garanti BBVA Romania group logged RON 263.1 million in total revenues at the end of June, including the figures reported by Garanti BBVA Leasing and Garanti BBVA Credite de Consum.

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Borrowing demand is recovering

"We're seeing a slight recovery of lending activity for the residential sector. Activity in this sector dropped to zero during the lockdown, but we're now seeing a recovery. We are resuming mortgage financing. Romania offers many investment opportunities at this time, there are companies that want to develop projects and we see a constant demand for loans," said Fran�ois Bloch, CEO of BRD-SocGen.

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Investment News (1)

CTP building new logistic park in northern Bucharest

CTP, the biggest long-term developer and manager of premium industrial and logistics parks in Central and Eastern Europe, announced on Wednesday that it will continue to expand in Romania with the future opening of a new logistic park in northern Bucharest. The CTPark Bucharest Nord project is worth EUR 65 million.

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Legislative News (1)

Law eliminating prison sentences for unauthorized infrastructure works sent back to president

The bill eliminating the possibility of handing down prison sentences for unauthorized infrastructure works was sent to President Iohannis for promulgation for the second time. The bill is the work of a group of Social Democrat deputies headed by former minister Florin Iordache.

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Politics (2)

PSD to file motion of censure next month

Marcel Ciolacu, interim leader of the Social Democratic Party (PSD), said the PSD would file a motion of censure against the Cabinet in August.

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President accuses PSD of creating health crisis

"PSD, dissatisfied with the successes of the PNL cabinet, wanted to create a health crisis to have reasons to criticize the cabinet. PSD - deliberately - created a health crisis to finally be able to criticize the cabinet for measures that could not be taken. PSD doesn't care that thousands of Romanians got sick, that hundreds of Romanians died. The only thing that mattered was to create a crisis in order to criticize the cabinet," said President Klaus Iohannis.

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Social (1)

33% of Romanians doubt coronavirus's existence

More than 55% of Romanians believe in the existence of the new coronavirus, while 33% doubt it and 12% consider it a hoax, according to a survey conducted by market research firm Novel Research and commissioned by Provident Financial Romania.

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