News

Daily Newsletter - 4 June 2021

Summary

FIC (1)
Macroeconomic (2)
Financial (3)
Investment (3)
Legislative (1)
European News (1)
Social (2)
FIC 
The Foreign Investors Council leadership's vision  for the 2021-2022 mandate 

Recently, the FIC member companies decided on the 15 top executives and professionals in the composition of the Board who will take on the leadership during the 2021 – 2022 mandate. The vision of the new FIC Board is based on the following main topics that could continue shaping the sustainable growth of the Romanian economy: the corollary of a sustainable recovery of the economy is the continuation of the vaccination campaign, with the support and involvement of the private sector in order to minimize the social and economic damage; a continued involvement for supporting attracting foreign direct investments (FDIs) to Romania, aiming at obtaining a multiplying development effect for the SMEs ecosystem; the elaboration of public policies and recommendations regarding the perspective of the green and digital transitions awaiting Romania in the 2021 – 2030 decade; and the improvement and consolidation of the consultative process between the authorities and the business environment with the objective of attaining and implementing sound policy measures. The business environment represented by the FIC members will continue to support the authorities’ efforts and be involved in the mass vaccination campaign.

FIC Reforms could lead to economic growth above the EU average 

Foreign Investors Council: The vision for the new FIC Board for 2021/2022

The member companies of the FIC elected the members of the Board of Directors

FIC: Reforms could lead to economic growth above the EU average

The member companies of the FIC elected the members of the Board of Directors

The member companies of the FIC elected the members of the Board of Directors

The vision of the management of the FIC for the mandate 2021 - 2022

FIC: For economic recovery, it is first necessary to continue the vaccination campaign

The vision of the management of the FIC for the mandate 2021 - 2022

The member companies of the Foreign Investors Council elected the members of the Board of Directors

The vision of the management of the FIC for the mandate 2021 - 2022

FIC: Reforms could lead to economic growth above the EU average


Macroeconomic 
Romania spent 1.6% of GDP with pandemic-related support measures
The European Commission has published a document on Romania’s economic situation, referring to the budget deficit and support measures taken last year in response to the Covid-19 pandemic. According to the aforementioned document, the significant budgetary deterioration in 2020 was partly generated by the fiscal measures implemented amid the health crisis and by the economic downturn.
Romania will lose ground in the ranking of world economies
Romania will fall in the global ranking in terms of Gross Domestic Product (GDP) size in the following decades, especially due to the demographic crisis. Another cause is the low level of investments, which will not support growth like in other emerging economies, according to a study by Capital Economics evaluating the growth potential until 2050.
Financial 
Finance Ministry borrowed RON 571 million from banks on 2.43% interest
The Ministry of Finance reopened a securities issue due in November 2024 and borrowed RON 571.8 million, compared to the scheduled level of RON 600 million, at an annual interest rate of 2.43%. Seven primary dealers took part in the auction. The total volume of demand stood at RON 593.8 million, of which competitive offers totaled RON 588 million, and those on behalf of clients amounted to RON 100 million.
RCA policy sales have decreased, while the value of paid compensations has increased
Yesterday, Euroins, the second biggest RCA insurer in Romania, announced a decrease in RCA policy sales in Q1 of 2021, in line with the strategy to reduce exposure on this sector. However, the insurer pointed out that the volume of paid damages had constantly grown. In 2021, the company recorded over 60,000 damage cases and paid over RON 400 million for all car repairs and physical injuries.
Tezaur program continues in June as well
Romanians can lend money to the state in June through three new Tezaur (Treasury) issues with 1, 3 and 5-year maturity and 2.95%, 3.35% and 3.65% interest rates. The five-year maturity issue will practically return, after it did not exist in May. Interest rates for 1 and 3-year maturities are similar to those in May. The minimum value of a subscription is RON 1, representing the issue price of one government bond.
Investment 
Iulius Group to invest EUR 35 million in infrastructure and urban mobility works
Iulius Group, the real estate developer controlled by Iulian Dascălu, estimates EUR 35 million investments in infrastructure and urban mobility works, which will serve the future Palas Campus building in Iaşi. Last year, the company started works on Palas Campus, a project that includes 54,000 square meters of office spaces and 6,000 square meters of retail spaces.
MOL has invested over USD 20 million in measures to combat COVID-19 pandemic
Hungarian group MOL has announced that it has invested over USD 20 million, since the onset of the COVID-19 pandemic up to present, in extensive measures to prevent and combat SARS CoV 2 virus infection for its employees and clients in Central and Eastern Europe and has donated USD 5 million to support the healthcare system. In Hungary, MOL supported the management and prevention of the COVID-19 health crisis through an approximately USD 1.5 million donation, the funds having been allocated for the acquisition of medical equipment, as well as other resources.
ANA Hotels has finalized the first stage of Athenee Palace Hilton’s renovation process
ANA Hotels has announced the finalization of the first stage of Athenee Palace Hilton’s renovation process, the "New Wing" with 132 rooms respectively. The investment in modernization works is a continuation of the long-term vision of ANA Hotels group’s owner, George Copos.
Legislative 
Parliament has decided that certain serious crimes are no longer subject to a limitation period
Yesterday, the Chamber of Deputies adopted, as the decision-making body, with a majority of votes, a draft law amending the Criminal Code. Following the amendment, slavery, human trafficking, trafficking in minors, procuring, sexual assault and torture are no longer subject to a limitation period. The law will be sent for promulgation.
European News 
National authorities take center stage in fight against fraud with recovery funds
National control mechanisms will be responsible for ensuring that the EU recovery funds are not affected by corruption or fraud, although the European Commission is also getting ready to use the new rule of law mechanism as soon as possible. The first payments of the recovery funds are expected to reach member states in July. The long-awaited resources of the EUR672.5 billion Recovery and Resilience Facility will help to boost the European recovery.
Social 
EU Digital COVID Certificate will be available for download on STS platform
Secretary of state Andrei Baciu, the vice-president of the National Committee for the Coordination of Anti-Covid-19 Vaccination Activities (CNCAV), announced yesterday, during a press conference, that the EU Digital COVID Certificate would enter into force on 1 July and would be available for download on a platform developed by the Special Telecommunications Services (STS). The certificate shows that a person was vaccinated against COVID-19, or has recovered from the disease, or has a negative RT PCR test result.
Prime Minister does not support an increase in children’s allowances
Chamber of Deputies president Ludovic Orban has announced that the situation of children’s allowances could be discussed in the first meeting of the ruling coalition. The leader of the National Liberal Party (PNL) has also indicated that neither he nor Prime Minister Florin Cîţu support an increase in such allowances starting from 1 July, according to news.ro.