News

Daily Newsletter - 5 October 2020

Summary

Macroeconomic News (4)

Economy support package to pass 7% of GDP

The economy support package will exceed 7% of GDP by the end of the year, according to the Minister of Finance, Florin Citu. In the first nine months of 2020, the government "injected an additional RON 34.5 billion (3.2% of GDP) into the economy," the finance minister said. Earlier, the Ministry of Finance announced that the government had made exceptional payments worth approximately RON 8.62 billion, generated by the COVID-19 epidemic, in the first eight months.

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12-month rescheduling of tax payments

Companies that were not in arrears at the time the state of emergency was declared will be allowed to request the rescheduling of tax payments for up to 12 months, with no collaterals, according to a draft decree put forward by the Ministry of Finance.

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Number of dissolved companies down almost 24%

The number of dissolved companies dropped almost 24% in the first eight months of 2020, compared to the corresponding period of 2019, according to information centralized by the National Office of the Trade Registry (ONRC). The highest number of dissolution decisions were reported in Bucharest (3,186 companies, down 19.14% year-on-year), followed by Timis, Constanta and Cluj counties.

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Food trade deficit reached EUR 968.2 million

Romania posted a food trade deficit of EUR 968.2 million for the first six months of this year, down 11% compared to the corresponding period of 2019, according to the Ministry of Agriculture and Rural Development (MADR). The deficit with the other European Union countries was EUR 1.74 billion, while the third country trade showed a surplus of EUR 781.4 million.

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Financial News (4)

BNR joins financial system cleaning bill

The National Bank of Romania (BNR) became last month a member of the group of central banks and financial supervisory authorities called the Network for Greening the Financial System. The network was established by eight central banks and supervisory authorities at the One Planet Summit, an event held in Paris in December, 2017.

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More than 44,000 Romanians hold deposits worth more than EUR 100,000

44,071 Romanians had deposits worth more than EUR 100,000 each, for a total of EUR 9.6 billion, at the end of the first half of this year, according to the latest statistical data from the Bank Deposit Guarantee Fund (FGDB). The number of deposit holders has increased by 4,191 since the end of 2019, while the value of savings jumped 8.9%.

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State borrowing passed RON 100 billion

The state's borrowing reached RON 103.5 billion in the first nine months of this year, after the government borrowed RON 6.2 billion in September. The RON 100 billion threshold was exceeded for the first time and, by the end of the year, the total borrowing should reach a new annual record of RON 138.5 billion, according to the Ministry of Finance.

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Interest rates on new RON-denominated deposits fall

Figures released by the National Bank of Romania (BNR) indicate that the interest rates of new RON-denominated deposits fell in August, for both retail and corporate deposits, while the interest rates of RON-denominated loans increased. The average interest rate for new RON-denominated loans was 1.68% in August, compared to 1.86% in July and 2.09% in May.

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Investment News (2)

CFR Calatori invests in ticket selling terminals

CFR Calatori will invest almost RON 10 million on the acquisition of mobile terminals that would allow the company's staff to sell tickets on trains. The holders of TrenPlus cards will be able to accumulate kilometers and receive bonuses and incentives, according to CEO Dan Costescu.

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Sulina port modernization project

Tulcea county authorities have approved a project worth more than EUR 17.5 million for modernizing the Sulina Port. Under this project, the authorities will modernize the port infrastructure, which is currently putting ships at risk during docking and loading/unloading operations. The project will be financed with European Union funds.

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Legislative News (1)

Law banning sale of state stakes amended

The Cabinet amended on Thursday the law that prevents it from selling any stakes held by the state for the next two years. The purpose of the amendment was to replace the word "stakes" with "shares". This will allow the government to sell assets held by state-owned companies.

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Politics (2)

PM Orban: PNL to approve PMP cooperation agreement

The National Political Bureau (BNP) of the National Liberal Party (PNL) will approve today a cooperation agreement with the People's Movement Party (PMP) regarding county and town councils across the country, according to PNL leader Ludovic Orban. "PMP is our ally in Parliament, even though they ran their own candidate, who, let's face it, gave us quite the scare," said Orban.

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Orban: How are we supposed to take our budget before this Parliament?

Prime Minister Ludovic Orban announced that next year's budget will be voted by the new cabinet after the parliament election. "How are we supposed to take our budget before this Parliament? Didn't you see what they did to the revision decree? They destroyed it. The PSD is pushing the country into bankruptcy," said the PM.

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