News

Daily Newsletter - 7 January 2021

Summary

Macroeconomic News (4)

Industry future depends on three factors

The Government is counting on the Romanian industry to grow by 6.1% as gross added value in 2021, after two years of contraction, according to data from the National Strategy and Forecast Commission (CNSP). The industry accounts for more than a fifth of the Romanian economy and is responsible for more than three quarters of exports. Petru Ianc, President of the Romanian Metallurgical Society, said the industry's future depends on three factors: the pandemic, the international industrial trend, and the government's ability to ensure the competitiveness of Romanian manufacturing.

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Farmers can apply for state aid with APIA

The Agriculture Payments and Intervention Agency (APIA) announced that applications for state aid in the livestock sector related to services provided in December and the fourth quarter of 2020 can be filed by until January 29, 2021. The applications must be submitted at the agency's county centers, respectively the Bucharest center.

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Budget bill to reach Parliament on February 4

The 2021 budget will be submitted to the Parliament on February 4, Prime Minister Florin Citu announced on Wednesday, adding that the budget was delayed in order to give the new ministers some time to get to know their ministries and investment projects.

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Cabinet proposes VAT cut for food deliveries

The hospitality industry has been and continues to be one of the worst affected sectors of the Romanian economy, requiring firm stimulus measures, especially now, when the vast majority of restaurants are reduced to operating outdoor spaces. Thus, in the absence of dedicated open spaces, food delivery services are one of the few ways where demand meets the supply of public catering services. In these conditions, the reduction of the VAT rate for food delivery services, from 9% to 5%, is a necessary step to ensure the survival of the hospitality industry.

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Financial News (2)

Interest margin down in November

The net interest margin for new RON-denominated deposits and loans dropped by six base points in November, down to 6.19 percentage points, the lowest figure since July, 2020. On the other hand, the net margin for outstanding RON-denominated deposits and loans increased by three base points.

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November was record month for mortgages

The total volume of new loans granted by banks in November was RON 3.5 billion, down 8.5% from the previous month, according to the latest data published by the National Bank of Romania (BNR). Housing loans reached RON 1.4 billion, the highest level of 2020, while consumer loans fell 15.5% to RON 1.5 billion.

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Investment News (1)

First Supercharger Tesla station to open in Timisoara

Tesla is moving ahead with its plans for Romania and has updated the list of cities where it will build Supercharger stations. The first station will be set up in Timisoara and will be ready in the first quarter of this year. In the second quarter, Tesla plans to open charging stations in Sibiu, Pitesti and Bucharest.

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Legislative News (1)

Virgil Popescu: "If ANRE can't", the new energy bill will correct the deregulation conditions

The Cabinet will amend the electricity and gas law after January 15 to specify the terms of deregulation, which is now pushing prices up by 26% for household consumers who do not opt for a competitive supplier. The new clarifications would complement the provisions featuring in the future vulnerable consumer protection bill, according to the Minister of Energy, Virgil Popescu.

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Politics (1)

Rafila: PSD is making a clear call for reopening schools

PSD has called for reopening all schools once the holiday is over, according to Social Democrat deputy Alexandru Rafila. "The closing of schools, as you know, was a measure that was not taken, at least for primary schools, in any other member of the European Union in November and December," said Rafila.

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Social (2)

Census postponed

The Romanian population census, scheduled for 2021, will be postponed by one year due to the pandemic. The authorities have decided that it is better that the census does not take place this year, because many people are self-isolating or under quarantine and census workers could easily get sick.

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Children trust in parents falls

The pandemic and the online school exclusively led to the isolation of students and a loss of trust in parents, which makes children more vulnerable to the dangers and negative patterns of the online environment, according to a study conducted by World Vision Romania.

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