News

Daily Newsletter - 6 October 2020

Summary

Macroeconomic News (3)

Romania's Q2 deficit third highest in EU

The highest second quarter deficits in the European Union were reported by France (EUR 14.3 billion), Greece (EUR 3.5 billion) and Romania (EUR 3 billion), according to Eurostat data. The EU had reported a EUR 52.9 billion current account surplus in the first quarter, followed by a EUR 72.7 billion surplus in the second quarter.

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Retail turnover up 1%

The turnover of the retail industry increased by 1% (in seasonally adjusted figures) in the first eight months of this year, according to the National Statistics Institute (INS). On a monthly basis, the turnover dropped 1.6% in August.

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Average monthly income reached RON 5,077 in Q2

The average monthly income per household reached RON 5,077 in the second quarter of this year, while the average total expenses amounted to RON 4,163 per household, according to data released by the National Statistics Institute (INS) on Monday. The average monthly income per individual was RON 1,973, with salaries accounting for 67.8% of household revenues.

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Financial News (4)

BCR analysts say BNR could relax monetary policy further

The National Bank of Romania (BNR) could resort to more monetary policy relaxation measures, but no sooner than 2021, according to BCR experts. The BNR board could hold a monetary policy meeting this week, despite the fact that the normal schedule of operations was suspended, but the meeting would bring no changes to monetary policy.

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Banks granted RON 38.5 billion worth of new loans

The value of new loans granted to retail and corporate clients in the six months since the beginning of the coronavirus pandemic amounts to RON 38.5 billion, the equivalent of 14% of all non-government borrowing, according to the Romanian Banking Association (ARB).

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Ministry of Economy released grant program procedure

The Ministry of Economy published on Monday an advanced version of the implementation procedure for the SME grant program. Measure 2 featured in Decree 130/2020 includes three types of state aid, with a total budget of EUR 350 million. Around 10,000 companies are expected to benefit from these grants.

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BBVA reconsiders divestment

Spanish group BBVA has reconsidered its decision to sell Garanti Bank Romania, thus rejecting OTP Bank's financial bid. BBVA had put Garanti Bank Romania on the market last year, a move that caught the eye of Banca Transilvania, Raiffeisen Bank, Intesa, OTP Bank, and J.C. Flowers, owner of First Bank.

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Investment News (2)

Minister of Finance: Investment spending surged in nine months

The Minister of Finance, Florin Citu, announced that the government's investment spending amounted to RON 30 billion in the first nine months of this year, up RON 6.9 billion compared to the corresponding period of last year. At the same time, the economy support package reached 6% of the GDP.

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Razvan Popescu invested EUR 350,000 in recovery clinic

Razvan Popescu, an entrepreneur with two decades of business experience, has invested EUR 350,000 in a medical recovery clinic operating under the Kino Med brand. In five years, Popescu wants Kino Med to become the best orthopedic and neurological recovery clinic in the country.

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Politics (2)

Basescu accuses president, PM of sacrificing nation

Traian Basescu has accused President Klaus Iohannis and Prime Minister Ludovic Orban of "sacrificing the Romanian people". Basescu urged the two to take urgent steps to limit the spread of the coronavirus before the medical system collapses.

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PNL selects diaspora candidates

The National Executive Bureau of the National Liberal Party (PNL) selected at Monday's meeting the list of candidates running for the diaspora seats in the parliament election, according to secretary general Robert Sighiartau. The deadline for filing the list of candidates is October 7.

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Social (2)

Almost 20% of employees saw productivity reduction

Around 19.8% of Romanian employees said their productivity had plunged during the pandemic, while more than 10% saw a slight loss of productivity, 11.4% had slight gains in productivity and only 7.3% performed much better from home, according to a survey by Eurofund.

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Bucharest DSP wants restaurants closed, private events banned

On Monday, the Bucharest Public Health Directorate (DSP) sent a proposal to the City Emergency Situations Committee (CMBSU) urging the closing of restaurants, the banning of all private events involving more than 50 individuals, making masks mandatory on a range of 100 meters around schools, and banning all religious processions in open areas. CMBSU will meet on Tuesday to discuss the proposal.

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