News

Daily Newsletter - 5 November 2020

Summary

FIC (1)

Amendment to union and collective bargain regulations sparks controversy

This week, the Coalition for Romania's Development (CDR) issued an official point of view stating that the amendment to the Social Dialogue Law must not affect the social balance and economic competitiveness of Romania.

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Macroeconomic News (4)

Payments authorized for almost 655,000 farmers

The Agriculture Payments and Intervention Agency has approved the payment requests made by 654,707 farmers under the 2020 early payment campaign, accounting for approximately 79% of all potentially qualifying farmers. The applications were filed between October 16 and November 4.

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Finance Minister says counties failed to pay welfare share

The government provided RON 1.23 billion for social services this year, with most of the funds being spent by October 31. However, the Minister of Finance, Florin Citu, pointed out that the county authorities had used the state budget's funds without paying their own 40% contribution.

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Low income and property tax rates produce low state revenues

The 10% income tax rate and the low property taxes mean that Romania has the lowest revenue rates from these taxes in the European Union. Moreover, certain categories of employees are exempt from the income tax.

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Real estate transactions soar in October

The number of real estate transactions passed 83,000 in October, up more than 43% compared to the corresponding month of last year and a three-year high, according to data from the National Land Register and Real Estate Advertising Agency (ANCPI). This is the fourth month of growth since the beginning of the pandemic, after a surprising 16.4% jump in June.

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Financial News (3)

Deferred payments affect 4% of BCR loans

Private individuals filed with BCR approximately 39,000 requests to defer the payment of loans because of the financial difficulties caused by the coronavirus crisis, of which only 11,000 are still active. Business clients filed only 500 requests. Deferred payments account for only 4% of BCR's retail loan portfolio and 10% of the corporate loan portfolio.

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Former Bancorex building sold

Real estate market sources claim that Bucharest Financial Plaza, the former headquarters of Bancorex, was sold in a deal whose details will be made public in early December. BCR, the current owner of the building, put it up for sale in August, 2019, after relocating its staff.

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NPL rate down

Although bankers are becoming concerned over the NPL situation, the non-performance rate continues to fall. The figures released by the National Bank of Romania (BNR) showed the NPL rate dropping from 4.35% in July to 4.31% in August and 4.06% in September.

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Investment News (2)

OTP Bank grants loan to Rara Invest

OTP Bank has granted a loan worth RON 8.9 million to Rara Invest SRL. The logistics company will use the money to support its development investment, such as the expansion of the Sura Mica, Sibiu, storage facility. The new warehouse add 15,000 sqm of storage space to the company's portfolio.

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Romania to spend another USD 175 million on modernizing F-16 fleet

The US Department of State approved a possible sale of F-16 modernization services, logistical support and related equipment to Romania, at an estimated cost of USD 175.4 million.

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Legislative News (2)

CCR postpones ruling

The Constitutional Court of Romania postponed for December 8 the ruling regarding the complaints filed by the People's Attorney and the High Court in connection with the new taxes on service pensions.

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50% reduction in tourism property tax

The tax on buildings and land owned by individuals or companies and used for providing tourism services will be slashed by 50%, according to a bill signed into law by the president on Wednesday. The reduction applies beginning with the next fiscal year.

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Politics (1)

Ciolos rejects PSD offer

Dacian Ciolos, leader of PLUS, rejected any possibility of cooperating with the Social Democrats, following a statement to this effect by PSD leader Marcel Ciolacu. Ciolacu expects the PSD to win the upcoming parliament election and declared his readiness to work with any party, except the National Liberals (PNL).

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Social (1)

Army to help with vaccination campaign

The army will be involved in vaccinating the population when the anti-Covid vaccine arrives, according to Health Minister Nelu Tataru. Asked, about the vaccination plan, Tătaru answered that the Cabinet is currently working on a strategy.

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