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Daily Newsletter - 4 March 2021

Summary

FIC Daily Newsletter | 04.03.2021
FIC (1) || Macroeconomic (3) || Financial (3) || Investment (3) || Legislative (2) || European News (1) || Social (2)
FIC: Investments, the trigger that can restart the economy

The Foreign Investors Council (FIC) welcomes the adoption of the budget by the Parliament and considers that it reflects a balanced and favourable vision for Romania's economic recovery. FIC consider that the central elements of the construction of the current budget are well outlined by the realistic estimation of future revenues and the framing of the general consolidated budget deficit (of 7.16%) within the acceptable limits at EU level. FIC believes that foreign direct investment can make a significant contribution to the economic recovery and therefore we reiterate the need to outline legislative measures and institutional structures dedicated to attracting foreign investment, considering this a priority for the next period. From this point of view, the FIC remains an active partner of dialogue that can support the authorities in such endeavours.

FIC: Investments planned for 2021 are an all-time high, can serve as catalyst to relaunch economy

Investments, the trigger that can restart the economy: Foreign Investors Council

Press release, Council of Foreign Investors - FIC

FIC: Investments, the trigger that can restart the economy

FIC: Public investments scheduled for this year reach an all-time high
FIC: Scheduled investments, at an all-time high. Current challenges can be solved

FIC: The investments scheduled this year reach an all-time high, 61.4 billion lei ...

FIC: The investments scheduled this year reach an all-time high, 61.4 billion lei ...

FIC: The investment budget of 61.4 billion lei, a catalyst in the recovery of the economy

FIC: The investments scheduled this year reach an all-time high

FIC: Foreign investment can make a significant contribution to economic recovery

FIC considers the elements of the budget construction well outlined

Foreign Investors Council: The 2021 budget reflects a balanced and favorable vision for the relaunch ...

Foreign investors welcome the 2021 budget
Romanian companies have over RON 1 million debts to the state budget
More than 7,000 Romanian companies have about RON 1 million debts to the state budget, after two years of economic growth and one year of pandemic, CITR has indicated. According to the aforementioned source, these companies have accumulated a total of RON 73 billion debts and represent important companies for economy, which the market and SMEs rely on. 66% of them, 4,600 respectively, are in a state of imminent insolvency, but have not yet resorted to any recovery procedure.
CFOs and finance directors in Romania are more optimistic than in 2020
CFOs and finance directors in Romania are more optimistic about the evolution of the main financial indicators of companies they work for than they were six months ago, according to the latest edition of Deloitte CFO Survey Romania, based on the opinions expressed by more than 100 CFOs and finance directors on the local market. Even though half of respondents are optimistic, cutting costs continues to be a top priority for 37% of them for the following 12 months, down from 58%, the level recorded upon the onset of the pandemic.
Macroeconomic data generate higher interest rates in Romania as well
The probability for the National Bank of Romania (NBR) to further reduce the key rate, after the 0.25% cut in January 2021, has decreased considerably, and this change in expectations of players on the market is also reflected in the evolution of local currency-denominated government bonds, according to a research note of Erste Asset Management’s investment department. They have added that the acceleration of economic recovery is paid with higher interest rates on sovereign loans.
Lending standards will not change in Q1 of 2021
Banks will maintain constant lending standards in Q1 of 2021 for both consumer and housing loans, according to a survey on population and non-financial companies’ lending conducted by the National Bank of Romania in February. The NBR survey shows that most lending standards remained constant in Q4 of 2020, both in the case of retail consumer loans and of loans for the acquisition of residences and lands.
Over 1.75 million residences were insured through a PAD policy last year
At the level of the insurance market, the Covid-19 pandemic period marked a slight increase in coverage through mandatory homeowners insurance policies, with 1,753,520 residences insured through PAD (mandatory homeowners insurance) policies at the end of 2020. The increase in the number of policies concluded in 2020 was also visible in the case of optional home insurance, the number of such policies having also slightly grown.
Fidelis government securities for population accumulated about RON 96.6 million total subscriptions
Fidelis government securities dedicated to the population accumulated about RON 96.6 million total subscriptions in the first three days after the launch of the issue. Euro-denominated ones, with five-year maturity and 1.55% annual interest, generated nearly EUR 8.61 million (about RON 42.01 million) purchase orders. Subscriptions for RON-denominated ones, with one-year maturity and 2.85% interest, amounted to RON 38.74 million, while RON 15.83 million purchase orders were recorded in the case of those with three-year maturity and 3.1% interest.
Braşov City Hall is preparing EUR 1.5 billion total investment projects
Braşov City Hall is preparing EUR 1.5 billion total investment projects, considering that the National Recovery and Resilience Plan (PNRR) brings a historic opportunity, which the new administration wants to seize in order to ensure economic regeneration and higher quality of living, Allen Coliban, the Mayor of Braşov, has explained. He has an integrated industrial revival plan, which includes both the transport and the human capital components.
Romanian National Post Company to invest EUR 22 million in Cluj-Napoca and Bucharest North transit centers
The Romanian National Post Company announced on Wednesday that it would organize a tender for the design, construction and equipping of two strategic logistics centers, in Cluj-Napoca and Bucharest North, the budget allocated for this project amounting to EUR 22 million. According to data published by the company, national and international postal technology producers can register between 3 and 16 March, by submitting a statement of intent.
Government wants to modernize Danube ports in Giurgiu and Corabia
The Government is to approve two draft decisions on the modernization of Danube ports in Giurgiu and Corabia, which will cost over RON 260 million. The investment will be financed through the 2014-2020 Large Infrastructure Operational Program and from the state budget, through the Transport and Infrastructure Ministry’s budget.
Chamber of Deputies rejected a draft law initiated by senator Şerban Nicolae
Yesterday, the Chamber of Deputies unanimously and decisively rejected the draft law regarding some measures of derogatory tax regime applicable to certain lands, constructions built on them and certain authorized economic activities, initiated by former senator Şerban Nicolae. On 10 February, the Constitutional Court of Romania had unanimously approved the challenges filed by the Government and by President Klaus Iohannis regarding this normative act.
Ministry of Transport has put up for public debate the draft normative act on students’ transport
The Ministry of Transport and Infrastructure has put up for public consultation the draft normative act amending working regulations at ticket offices and in trains, with a view to granting a 50% discount to students on rail transport, in accordance with Government Emergency Ordinance (OUG) no. 8/2021. According to the document, there will be two categories of beneficiary students, namely students to benefit from a 50% discount and students from orphanages, who will benefit from free rail transport.
European Commission indicated that the Stability and Growth Pact should remain suspended
The European Commission indicated yesterday that the Stability and Growth Pact should remain suspended next year, as Europe’s economy needs additional stimulus to return to the level prior to the crisis generated by Covid-19. Despite the roll-out of vaccines and the expected arrival of the EU’s recovery fund in the second half of the year, there is still a “substantial level of uncertainty”, a European official stated.
Romania has exceeded the threshold of one million persons who got vaccinated against Covid-19
Yesterday, Romania exceeded the threshold of one million persons who got vaccinated against Covid-19, and the serums’ delivery schedule and the increase in the administration capacity will allow reaching a 70% immunization level among the adult population by September, Prime Minister Florin Cîțu stated. The person who benefitted from the dose number one million is a woman aged over 80.