News

Daily Newsletter - 4 March 2020

Summary

Macroeconomic News (2)

Number of foreign capital companies down

The number of new companies established by foreign capital decreased by 10.8% in January, compared to the corresponding period of the previous year, falling to 387 units, according to data centralized by the National Office of the Trade Register (ONRC). The 387 new companies had a registered capital totaling USD 790.4 million, down 15.1% from January, 2019.

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Industrial prices up in January

Industrial production prices, both internal and external, increased by 4.7% in January, compared to the corresponding month of the previous year. The growth rate is higher compared to the previous month's, according to data published by the National Statistics Institute (INS) on Tuesday. This is the highest growth rate since May, 2019.

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Financial News (3)

Financial education events

The National Bank of Romania (BNR) and the Financial Supervisory Authority (ASF) organize, on March 24, 2020, two events dedicated to financial education, part of the series of actions carried out by the two institutions during Global Money Week. The international program is organized by the Organization for Economic Cooperation and Development.

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Libra Internet Bank to sell firs bond issue

Libra Internet Bank, a small lender specializing in financing professionals, announced it would make a private sale of EUR 10 million worth of bonds through Tradeville. The transaction is scheduled for completion at the end of March. The subordinated bonds will mature in 10 years, although the lender has the option to increase the amount borrowed.

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Patria Bank posts RON 5.3 million in earnings

Patria Bank, a lender owned by the Emerging Europe Accession Fund, logged RON 5.3 million in earnings for last year. "2019 was a year of major decisions, some even difficult, if we think about network optimization, with new steps toward digitalization and, perhaps most importantly, maintaining the increased interest in financing Romanian entrepreneurship."

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Investment News (2)

Number of stalled projects doubled

"The prioritization of investment projects" seems to have no effect in reality, with the number of investment projects with "0% actual execution" having doubled in recent years, according to data from the fiscal-budget strategies (SFB) of the Ministry of Finance (MFP). Each new strategy multiplies the number of priority projects that never get implemented.

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Cernavoda nuclear power plant retooling could require state aid

The feasibility study regarding the project for retooling Reactor 1 of the Cernavoda nuclear power plant, which has recently become the subject of a market consultation procedure launched by state operator Nuclearelectrica, will have to evaluate whether, in order to be economically profitable, the retooling process will need state support measures, such as state guarantees for obtaining financing, as well as the so-called "contracts for difference".

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Legislative News (1)

Senate commission to discuss MTPL bill next Wednesday

The Senate's Budget-Finance Commission has reported out negatively the bill that would introduce a reference price for repairs conducted by car shops for MTPL insurance holders. The bill had been introduced by Senator Marius Bota and enjoyed ample support from the insurance companies.

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Politics (2)

PSD congress to be held on March 14

The leaders of the Social Democratic Party (PSD) decided at an informal meeting held on Tuesday to hold the party congress on March 14, according to political sources. The congress will elect the new party leadership. So far, Marcel Ciolacu is running unopposed for party leader.

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PSD to attend Citu cabinet vote

The MPs belonging to the Social Democratic Party (PSD) will take part in the vote on the Citu cabinet, according to interim party leader Marcel Ciolacu. The MPs will vote against the new cabinet, while keeping an eye on the National Liberals.

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Social (2)

Romanians more concerned about river pollution

Romanians take part in environment protection events to a greater extent than the rest of EU citizens, but personally they recycling and save energy to a much smaller degree. According to a Eurobarometer on environmental issues, about 46% of Romanians say that environment protection is very important to them, compared to a EU average of 53%.

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Major employment stimulus project

The National Employment Agency (ANOFM) has submitted a project and received the approval of the Ministry of European Funds (MFE) for obtaining EUR 93 million in financing from the European Social Fund for stimulating employment. The project aims at finding jos for over 15,700 unemployed people over the age of 29 in the next 14 months.

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