News

Daily Newsletter - 6 November 2020

Summary

Macroeconomic News (3)

Commerce keeps expanding despite pandemic

The retail sector's indicators are almost normal despite the pandemic, according to data released by the National Statistics Institute (INS). The sector grew 1.7% in the first nine months of this year, held back by an 8.4% contraction in fuel sales, the result of direct and indirect restrictions on traveling.

Top

Farmers to be paid bonuses

The state will pay farmers and fishermen bonuses of EUR 100 or EUR 200 for selling their primary products. The bonus value depends on the amount of goods sold, according to a bill signed into law.

Top

GDP to fall 5.2% in 2020, grow 3.3% in 2021

Romania's GDP will contract 5.2% in 2020, before growing an estimated 3.3% in 2021 and 3.8% in 2022, while the unemployment rate will climb 5.9% this year and 6.2% next year, according to the forecast released by the European Commission on Thursday. The budget deficit is expected to reach 10.3% of the GDP in 2020, up from 4.3% in 2019.

Top

Financial News (3)

Intesa Sanpaolo Romania posts EUR 4 million in earnings

Intesa Sanpaolo Romania, the local subsidiary of the namesake Italian banking group, logged EUR 4 million in earnings for the first nine months of 2020, a far cry from last year's EUR 17 million. The bank's operating revenues reached EUR 31 million, down 11.7% year-on-year.

Top

Banca Romaneasca secures additional resources

Banca Romaneasca announced that its guarantee budget for the "New House" program was increased by 60%, which allows the bank to grant more mortgages to more clients. The bank offers "New House" loans at 4.71% interest, plus a fixed margin of 2%, with zero application review or early repayment fees.

Top

BRD logs RON 738 million in earnings

The BRD group reported RON 738 million in earnings for the first nine months of this year, down 39% from the RON 1.23 billion reported for the corresponding period of 2019, according to the notification sent to the Bucharest Stock Exchange (BVB).

Top

Investment News (2)

"Romulus Vuia" ethnographic park to be expanded

The Cluj County Council has launched a project for revitalizing and expanding the "Romulus Vuia" ethnographic park, located near the Hoia forest. The project will see the park expanded by 30 hectares at a cost of EUR 12 million.

Top

TeraPlast builds biodegradable packaging plant

TeraPlast, a producer of construction materials, announced it would invest EUR 11.8 million in a new production facility for biodegradable film. TeraPlast Folii Biodegradabile SRL, a new entity in the group, has applied for EUR 5.8 million in state aid for this project.

Top

Legislative News (2)

New offshore regulations could be passed by early March

Parliament could pass the new offshore law by early March, in order to give Black Sea investors the time to make decisions based on clear figures, said Cristina Pruna, a USR deputy and member of the Chamber of Deputies' Industry and Services Commission, on Thursday. Pruna attended the Natural Gas Forum, organized online by Financial Intelligence.

Top

New condition for 50% tax cut

Beginning with January 1, 2021, the 50% reduction of the tax on buildings and property used for providing tourism services will be applied when these assets are used for a maximum period of 180 days, instead of "seasonally", as the Fiscal Code currently stipulates, according to a bill signed by President Iohannis.

Top

Politics (2)

Ciolacu: After losing the battle against the pandemic, Orban called Iohannis to preside over the failure of the PNL government

PSD leader Marcel Ciolacu said PM Orban had called President Iohannis to preside over the failure of the PNL government, after losing the battle against the pandemic. Ciolacu also accused the National Liberals (PNL) of being ready to sacrifice everything "for a handful of votes".

Top

Serban Nicolae (PER): There's no actual opposition in the current Parliament

Senator Serban Nicolae, head of ticket for the Romanian Ecologist Party (PER), said there's no actual opposition in the current Parliament, while the legitimacy of political decision makers is "in grave doubt" if less than half of voters take part in the upcoming election.

Top

Social (1)

Partial lockdown to begin on Monday

President Klaus Iohannis presided over the Thursday evening Cabinet meeting where the new measures and restrictions were announced, as the country draws near to 10,000 cases per day. The election will be held on December 6, as scheduled, said the president.

Top