News

Daily Newsletter - 4 February 2020

Summary

Macroeconomic News (2)

Farmers could receive EUR 39.47 million in minimis aid

Farmers could receive EUR 39.47 million in minimis aid for growing tomatoes in hothouses, according to a draft bill posted by the Ministry of Agriculture on its website. The minimis program would be in force across the country, for tomato farming in protected spaces.

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Real estate prices to increase

Real estate prices are expected to increase by up to 10% this year in the regions with good economic development potential, according to experts from real estate firm RE/MAX Romania. "Based on the evolution of the real estate market in Romania, this market has been in a mature stage for a long time and will remain so. This is not a real estate boom, but nor will it enter a crisis, as has been speculated lately," said Razvan Cuc, President of RE/MAX Romania.

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Financial News (3)

MFP borrowed RON 902.7 million

The Ministry of Finance (MFP) borrowed RON 902.7 million on Monday, through an issue of benchmark bonds with a residual maturity of 140 months, at an average yield of 4.50% per year, according to data released by the National Bank of Romania (BNR). The nominal value of Monday's issue was RON 700 million, while the primary dealers offered a total of RON 1.23 billion.

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Intesa and OTP bidding for Garanti

Spanish group BBVA put Garanti Bank Romania up for sale in the second half of 2019. The negotiations have since narrowed to two bidders: intesa (Italy) and OTP (Hungary). The Spanish group kept the sale process discrete, holding talks only with certain banks. The transaction could pass EUR 400 million. Among the investors interested in Garanti Bank Romania were Banca Transilvania, J.C. Flowers and Raiffeisen Bank.

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Foreign currency reserves up

The foreign currency reserves managed by the National Bank of Romania (BNR) reached EUR 35.5 billion in January, up EUR 2.57 billion from the end of December 2019, according to data released by the central bank on Monday.

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Investment News (2)

Sanjeev Gupta invested EUR 7 million in environment protection equipment

Sanjeev Gupta, the new owner of Liberty Galati, announced a EUR 200 million investment plan for the steel mill. More recently, Liberty Galati spent EUR 7 million on equipment designed to reduce the emissions of dust and polluting gases.

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Energy industry needs EUR 22.6 billion in investment by 2030

The energy industry needs EUR 22.6 billion in investment by 2030 in order to reach the targets set by the National Plan for Energy and Climate Change (PNIESC). Of the total sum, EUR 9.8 billion would go to grids and networks, EUR 12 billion to power plants, while EUR 800 million would be spent on steam boilers.

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Legislative News (1)

Senate rejects bill delaying child rearing aid increase

The Senate rejected on Monday the Cabinet's bill postponing the doubling of child rearing aid until August 1. According to the original bill, drafted by the Social Democratic Party (PSD), passed by the Parliament and signed into law on January 6, sets the aid for children under the age of 2 at RON 600 per month.

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Politics (2)

Motion of censure read in Parliament

The motion of censure launched by the Social Democrats (PSD) and the Magyar party (UDMR) was read by the Parliament on Monday. Marcel Ciolacu, interim leader of the PSD, said the math showed 232 votes supporting the motion, although negotiations were still ongoing. Ciolacu threatened PSD MPs who refused to vote or who did not attend the session with suspension from the party.

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Orban vows to turn away PSD mayors

Ludovic Orban, leader of the National Liberal Party (PNL), said PNL would turn away the mayors who would be willing to jump the PSD ship ahead of the local election. Orban told the media on Monday that the leaders of county organizations will have to run for either county council or city hall in the county seats.

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