News

Daily Newsletter - 6 May 2020

Summary

FIC (1)

Ramona Jurubita, FIC President and managing partner, KPMG: We have contraction scenarios ranging from 5% to 15% of our turnover

  "Like any company, we couldn't just help customers make comeback scenarios. We had to apply them to our company as well. We're working with three constantly changing scenarios, that we adjust according to developments in each line of business. We have scenarios going from a 5% drop to a 15% drop in turnover, but these depend a lot on the way several sectors evolve from an economic point of view. The recovery will be slow, gradual, and a very important aspect will be the health security conditions. As I see the restart of the economy: a soup in which we have more ingredients, more letters and the letters practically respect the degree to which the sectors of the economy will recover. I think that based on these ingredients in the soup, the return program after May 16 must be considered,explained Ramona Jurubita, FIC President and managing partner, KPMG Romania, during the "Restart Romania. What the new economic era will look like" ZF Videoconference.


Ramona Jurubita, FIC President and managing partner, KPMG: We have contraction scenarios ranging from 5% to 15% of our turnover

Ramona Jurubita, FIC President and managing partner, KPMG: We have contraction scenarios ranging from 5% to 15% of our turnover

Restart Romania

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Macroeconomic News (3)

Citu sees V-shaped recovery

Finance Minister Florin Citu said the service and industry sectors dragged the economy down in the second quarter because they were the worst affected by the pandemic. However, Citu expects a V-shaped recovery for the economy, although he thinks the worst hasn't passed yet for Romania.

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MFP prepares RON 6 billion bond issue

The Ministry of Finance (MFP) is evaluating all the financing options put forward by the international financial institutions that do not come with strings attached. The Ministry is also considering a RON 6 billion issue of bonds for retail clients in Romania.

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Industrial production prices down 1.2% in March

The overall industrial production prices (domestic and foreign) decreased 1.2% in March of this year, compared to February. The year-on-year trend was a 0.7% increase, according to data published by the National Statistics Institute (INS) on Tuesday.

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Financial News (3)

Banking interest margins down in March

Banking interest rates fell in March for the third month in a row, and their evolution will continue to be influenced by domestic and foreign monetary policy decisions, the international markets, and the domestic public finance challenges of an election year. The medium-term estimates indicate a convergence of interest margins for RON-denominated and EUR-denominated loans and deposits, according to Andrei Rădulescu, Director of Macroeconomic Analysis at Banca Transilvania.

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First Bank completes takeover

First Bank, owned by US investment fund J.C. Flowers, completed the acquisition of the majority stake in Leumi Bank Romania. The fund decided to take over Leumi Romania through a bank that is already licensed on the local market in order to simplify the approval procedure. First Bank is the former Piraeus Bank, bought and rebranded by J.C Flowers, which is currently undergoing an extensive restructuring process. Staff layoffs and misunderstandings over the payment of severance were followed by street protests by bank employees.

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More than 10,000 SMEs chose Banca Transilvania

So far, over 10,000 SMEs have chosen Banca Transilvania for the SME Invest Romania program. The bank's budget is RON 3.4 billion. Banca Transilvania has signed the Grant Guarantee and Payment Agreement with the National Loan Guarantee Fund for Small and Medium Enterprises (FNGCIMM). Companies can apply for state-guaranteed financing for day-to-day business and investment.

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Investment News (2)

Tramway acquisition contract

Nicolae Robu, Mayor of Timisoara, and Sorin Maxim, head of the West Regional Development Agency (ADR Vest), signed on Tuesday a financing contract worth more than RON 96 million for the acquisition of seven new trams. The Timisoara City Hall had previously signed two other contracts, bringing the total number of trams to 21.

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Segezha Packaging invests EUR 1.3 million in production capacity expansion

Paper packaging producer Segezha Packaging will spend EUR 1.3 million this year to build a new warehouse and a new production hall near its existing Ploiesti facility.

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Legislative News (2)

Parliament, President's Office and courts instructed to use electronic signature

The Parliament, the President's Office and the courts will have to use electronic signature and electronic documents, according to a bill passed by the Senate in an unanimous vote. This is the first large-scale implementation of a framework mandating the use of electronic signature.

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Senate cancels incentives for gambling operators

The suspension of tax payments granted to the operators of traditional gambling will be repealed, according to the vote taken by the Senate's Budget-Finance Commission on Monday. The decree suspending tax payments has reached the Parliament, with the Senate being the first chamber scheduled to vote on the bill.

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Politics (1)

Klaus Iohannis: CCR must revise its Kovesi ruling immediately

President Klaus Iohannis said on Tuesday that the Constitutional Court must revise its ruling in the Kovesi case, "as well as the rulings regarding some simple statements, be they political or not". The president's statement came soon after Laura Kovesi won the ECHR lawsuit for wrongful dismissal.

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Social (1)

Arrivals at hospitality locations down almost 70%

Hospitality locations across Romania reported 242,100 arrivals in March, down 69.8% from the corresponding month of 2019, while the arrivals of foreign tourists at border crossing points amounted to 409,400, down 50.1% year-on-year, according to the National Statistics Institute (INS).

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