News

Daily Newsletter - 5 February 2020

Summary

FIC (1)

PM Ludovic Orban's meeting with FIC representatives

More than 50 CEOs from some of the largest companies in Romania met yesterday with prime minister Ludovic Orban and discussed about the future of foreign investments in Romania. This discussion comes after several years during which foreign investors received rather mixed signals from the authorities. FIC members welcomed the prime-minister’s openness towards dialogue as several major topics were touched upon such as stimulating further investments in order to create more added value in the economy, measures to address the deficit on the labour market, how Romania can take advantage of the new Green Deal, developing the local infrastructure and digitalising public administration or the fiscal challenges ahead in the next few years.



PM Ludovic Orban's meeting with FIC representatives

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Macroeconomic News (3)

Agriculture in digital age

The Commoditrader platform, a Danish fintech, has signed a partnership with the Maize Farmers Association of Romania (APPR) that allows the association's 500 farmers to list and trade their products in an online market. In 2019, Romania's maize harvest amounted to 16 million tons, down 13% from the previous year, according to the Ministry of Agriculture.

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Industrial prices up 3.9% in December

The industry's contribution to the overall inflation rate seems to increase as industrial production decreases. Industrial production prices jumped 3.9% in December, compared to the corresponding month of 2018, and there's little chance that production would buck the six-month downward trend.

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e-Commerce market exceeds EUR 4.3 billion

Romania's e-Commerce sector exceeded EUR 4.3 billion at the end of 2019, up around 22% compared to 2018. The average value of daily purchases was around EUR 12 million, according to estimates from the Romanian Online Store Association (ARMO).

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Financial News (4)

Free insolvency counseling for consumers

Consumers who are more than 90 days behind in payments benefit from free insolvency counseling, provided by representatives of the National Consumer Protection Authority (ANPC). The representatives will help consumers prepare their paperwork in order to begin the insolvency procedure, according to ANPC.

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Local banks launch campaign

Local banks launched on Tuesday the RightToBanking information and awareness campaign in an attempt to improve their communication with the public about the banks' role. The campaign talks about the mutual trust between people and the banking system, which is crucial for both individual welfare, as well as the growth of the national economy.

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Despite high inflation, national banks in Eastern Europe avoid rate hikes

Unlike Western European countries, the Eastern European members of the European Union are experiencing a substantial rise in consumer prices. However, even if the price trend exceeds the official targets, national banks are avoid raising the interest rates, given the other risks. The national banks in Romania, Poland and the Czech Republic will hold monetary policy meetings this week, but in all three states, interest rates are expected to stay at the current levels, with national banks prioritizing economic growth.

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Cabinet rules out gold repatriation

The Cabinet does not want the gold reserve repatriated, according to an official opinion issued after the National Bank of Romania (BNR) presented a report on the cost of repatriation. BNR experts put the total cost at RON 1.4 million, the equivalent of 20 years of custodial fees at the Bank of England.

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Investment News (1)

Rottaprint reports EUR 4 million investment budget

Rottaprint, the biggest printer of stickers and flexible packaging in Romania, posted a turnover in excess of EUR 23 million for 2019, up almost 7% from the previous year. The company has also announced it would spend EUR 4 million on investment projects this year.

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Legislative News (1)

Cabinet to issue decree controlling Neptun Deep stake

The Cabinet has drafted a decree that would amend the Oil Law, by invoking the EU legislation, in order to give the National Mineral Resources Authority (ANRM) the power to deny any new oil field leasing agreements, as well as to terminate any existing agreements on national security grounds. The decree also gives the state control over who can buy stakes in oil fields.

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Politics (2)

Orban threatens early election

Prime Minister Ludovic Orban announced that, if the PSD-UDMR motion of censure passes the Parliament on Wednesday, the National Liberal deputies and senators will not support the next two cabinet proposals in order to trigger an early election.

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Parliament to debate and vote on motion of censure

The Parliament's leadership decided to hold the motion of censure debate and vote on Wednesday. The meeting begins at noon. PSD leader Ciolacu said he had the votes to pass the motion. Prime Minister Orban is convinced of the opposite.

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Social (2)

RON 1.65 million in emergency aid for 470 families

A total of 470 families and individuals facing critical situations will receive emergency aid amounting to RON 1.6 million, based on social investigations carried out by county agencies, according to the Ministry of Labor and Social Protection (MMPS). RON 344,500 will be distributed to 59 families and individuals from the Alba, Bacau, Botosani, Buzau, Caras-Severin, Cluj, Dolj, Hunedoara, Iasi, Neamt, Olt, Prahova, Suceava, Teleorman, Valcea, and Vrancea counties, as well as the city of Bucharest. These people have lost all their possessions to fires.

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Government approves "Warm Meal" program

The Cabinet issued a decree approving the pilot project for granting food aid to preschoolers and students from 150 education units. The program is also known as "Warm Meal" and it had previously operated in 50 locations. The decision to expand it to 100 new locations is grounded in the positive effects of on the direct and indirect beneficiaries.

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