News

Daily Newsletter - 6 July 2020

Summary

Macroeconomic News (4)

Grants for SMEs 

One of the chapters in the Cabinet's economic recovery plan mentions EUR 1 billion that would be used as soon as possible to provide small and medium-sized companies with working or investment capital. "The funds are already in the Treasury. We're talking about grants, non-reimbursable capital injections. Unlike the other EUR 99 billion, which exist only on paper, these funds are actually there," said Dragos Petrescu, President of the Coalition for Romania's Development (CDR).

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Iancu Guda: Romania could get EUR 100 billion from taxes and downsizing state apparatus

Iancu Guda, President of the Association of Finance-Banking Analysts in Romania (AAFBR), said Romania could get EUR 100 billion over the next five years by improving tax collection and downsizing the state apparatus.

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ONRC: Number of dissolved companies down more than 31%

The number of dissolved companies dropped 31.66% in the first five months of 2020, compared to the corresponding period of the previous year, falling from 14,157 to 9,675, according to the National Office of the Trade Registry (ONRC).

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Unemployment rate up in May

The unemployment rate climbed to 5.2% in May, up 0.4 pp from the previous month and 1.3% from the corresponding month of 2019, according to the National Statistics Institute (INS). The number of employed was 463,000.

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Financial News (4)

Alpha Bank Romania to launch Alpha PhonePOS application

Alpha Bank will launch an application that turns the clients' mobile phones into POS devices. The solution is compatible with Android mobile devices and responds to the growing trend of digitization, according to a press release. Alpha PhonePOS can be used without any additional investment in equipment and consumables. With this innovative application, developed with the help of Provision and supported by VISA, entrepreneurs and freelancers will be able to accept payments with contactless debit or credit cards or through devices equipped with NFC technology, such as smartphones, watches and smart bracelets.

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Postponing loans because of pandemic does not hurt credit score

The National Bank of Romania (BNR) announced that payment obligations suspended in compliance with Decree 37/2020 are not listed with the Credit Risk Bureau (CRC) as overdue payments. As a consequence, suspending payments for this reason does not have a negative impact on the relationship between banks and debtors.

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MFP borrowed RON 75 million

The Ministry of Finance (MFP) borrowed RON 75 million from the commercial banks at Friday's supplementary auction. The interest rate was 3.87% per year, according to the National Bank of Romania (BNR).

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Loan default risk is now severe

Banks think that the risk of corporate and retail clients defaulting on their loans increased from "moderate" to "severe" in the first quarter of this year, without going through the "elevated" stage, according to a survey conducted by the National Bank of Romania (BNR).

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Legislative News (2)

Cabinet working on justice bill

"As we promised when we took office, we are putting together a bill at the Cabinet level to repair the Justice regulations that others tampered with and we will start consultations in this regard. The success of this approach depends, however, on the abandonment of the retrograde agenda of some political forces, either voluntarily or through elections," said PM Ludovic Orban.

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Emergency bill for offshore wind farms

Companies investing in the development and operation of offshore wind farms in the Romanian zone of the Black Sea can get subsidies of up to EUR 25 per MWh above the electricity market price, while the right to launch and implement such projects will be obtained from the state either through claims or direct licensing, according to a bill.

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Politics (2)

PNL Senator invokes Axis of Evil

Florin Roman, leader of the National Liberal (PNL) group in the Senate, said the Constitutional Court is a branch of the Social Democratic Party (PSD), along with the People's Attorney. Roman called the Court, the People's Attorney and the PSD an "Axis of Evil" and the main "adversary of common sense Romanians fighting against COVID".

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Marcel Ciolacu: We will file a motion of censure and it will 100% pass

Marcel Ciolacu, interim leader of the Social Democratic Party (PSD), announced on Sunday evening that the party would file a motion of censure, which will "100% pass" the Parliament.

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Social (1)

Eurostat and Global Youth Tobacco Survey say Romania has among lowest youth smoking rates

Romania has one of the lowest smoking rates among young people, according to Eurostat and Global Youth Tobacco Survey. Around 4.1% of the country's 15 to 19-year-olds smoke every day, behind only Iceland and Norway. By comparison, France reported a youth smoking rate of 14.7%, Hungary - 19.9%, and Austria - 20%.

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