News

Daily Newsletter - 4 June 2020

Summary

Macroeconomic News (4)

Not all sectors affected equally

The exposure of the Romanian economy to IT&C services (5% of the gross added value comes from IT&C), one of the highest in Europe, is one of the advantages often invoked in recent years. The national economy will be severely affected by the coronavirus crisis, but not all sectors will be affected equally.

Top

Economic situation to depend on public health developments

The economic situation will depend mainly on public health developments, according to the speech delivered by Mugur Isarescu, Governor of the National Bank of Romania (BNR), at the 43rd meeting of the Black Sea, Balkans and Central Asia Area Governor Club. Isarescu added that the only viable option in the long run is to return to a "normal" monetary policy, while being aware that "the new normal will be somewhat different than the old one".

Top

Industrial production prices down in April

The industrial production prices (internal market and external market) decreased by 1.6% in April, compared to the previous month and by the same 1.6% compared to the previous year, according to data published by the National Statistics Institute (INS) on Wednesday. As a result of the coronavirus pandemic outbreak, some companies have temporarily shut down, reduced their operations, or partially changed their economic activity since the enforcement of government restrictions.

Top

SME aid package worth EUR 1 billion

The Ministry of Economy, Energy and Business Environment is preparing an aid package for small and medium-sized enterprises, with a budget EUR 1 billion in fresh money. According to the Minister of Economy, this package will be divided into three projects: EUR 550 million in investment grants, EUR 350 million in capital grants, and EUR 100 million euros for companies with a single employee.

Top

Financial News (3)

Entrepreneurs can open BT accounts remotely

Banca Transilvania announced the launching of NEOcont, a service allowing entrepreneurs to open current accounts for their businesses 100% remotely, using any device. Entrepreneurs can now use solely online means to open both current and share capital accounts, while also managing them using the online application.

Top

New corporate deposits down 8.5%

The value of new RON-denominated deposits opened by corporate clients amounted to RON 52.3 billion in the first quarter of this year, down 8.5% on an annual basis. Including the value of new EUR-denominated deposits, the total value of corporate deposits reached RON 57.5 billion in Q1, 2020.

Top

OTP Bank Romania finances subsidies

OTP Bank Romania finances in advance the subsidies of local farmers. The bank offers a unique product, amounting to 160% of the value of acreage subsidies, and expects an increase in the farmers' needs of financing because of the drought. The demand for financing for APIA SAPS subsidies will increase significantly, compared to last year's figures.

Top

Investment News (1)

Senate passes judiciary infrastructure update bill

The Senate passed on Wednesday the bill approving the loan agreement between Romania and the Council of Europe Development Bank. The loan will be used to modernize Romania's judiciary infrastructure. The agreement was signed in Bucharest, on August 13, 2019, and in Paris, on September 2, 2019.

Top

Legislative News (1)

New terms imposed on land sales

The Parliament passed an amendment to the law governing the purchasing of agricultural land, establishing a new pre-emption order and new terms for property acquisitions. The new rules, which are ready to come into force this year, impose an 8-year ban on selling the land in question, unless buyers are willing to pay a tax rate of 80%.

Top

Politics (2)

Ciolacu: PNL must negotiate with all parties

Marcel Ciolacu, interim leader of the Social Democratic Party (PSD), stated that the National Liberals (PNL) must sit down and negotiate with all parties in order to decide the date of the local elections.

Top

Varujan Vosganian and five other ALDE deputies join PSD group

The deputies representing ALDE have joined the Social Democrat (PSD) group, according to the announcement made by Varujan Vosganian on Wednesday.

Top

Social (2)

Unemployment rate was 4.8% in April

The unemployment rate reached 4.8% in April, up 0.2 percentage points compared to the previous month, according to the National Statistics Institute (INS).

Top

Parliament doubles financial aid to children

The Chamber of Deputies passed on Wednesday the bill rejecting the Cabinet decree that would postpone the doubling of financial aid provided to poor children. The bill passed in a 209 to 3 vote. 98 deputies abstained. As a result, the financial aid will double much sooner than the Cabinet wants.

Top