Daily Newsletter - 8 February 2021


FIC Daily Newsletter | 08.02.2021
FIC (0) || Macroeconomic (3) || Financial (3) || Investment (4) || Legislative (2) || Politics (1) || Social (2)
Romania will have a budget deficit of 7.3% of GDP in 2021
ING Bank Romania chief-economist Valentin Tătaru estimates that Romania will have a budget deficit of 7.3% of GDP in 2021, close to the Government’s target. The necessary financing in 2021 will be covered by approximately EUR 7 billion Eurobond issues on the external market and by RON 4 billion government bond issues for the population on the domestic market, Mr. Tătaru wrote in a report for investors.
Prime Minister Florin Cîţu spoke about budget subsidies for companies
State-controlled companies operating at a loss which want to continue to benefit from subsidies from the state budget must come up with a restructuring program to show they can become profitable within the next few years, Prime Minister Florin Cîţu stated on Saturday, warning that some of those companies might “not survive”. When asked by journalists about this year’s budget, the Prime Minister pointed out that personnel expenditure and subsidies had doubled in four years, but public administration employees’ performance had failed to double.
Number of de-registered companies at national level has decreased
The number of de-registered companies at national level decreased by nearly 49% last year compared to 2019, to 51,715 de-registrations, according to the National Trade Register Office (ONRC)’s statistics. The largest numbers of de-registered companies in 2020 were recorded in Bucharest - 8,603 (31.47% fewer than in 2019) and in Cluj County – 2,446 (down by 38.99%), Timiş County – 2,308 (down by 33.49%) and Constanţa County – 2,265 (down by 29.59%).
Ministry of Finance is to launch three new government bond issues
Starting today, the Ministry of Finance is to launch three new government bond issues within the Treasury Program, with 1, 3 and 5-year maturities and 3%, 3.30% and 3.45% interest rates. The government securities have a RON 1 nominal value and come in dematerialized form. Annual interest rate is paid on the dates stipulated in the issue prospectus. Furthermore, the government bonds issued within the Treasury Program are transferrable and can be redeemed before maturity. An investor can perform one or several subscriptions within the same issuance.
Government Decree on loan instalments deferral procedure was published in the Official Gazette
The Government Decree on the loan instalments deferral procedure has been published in the Official Gazette of Romania, about one week after having been adopted by the Government. New methodological norms for postponing the payment of loan instalments were approved by the Executive towards the end of January, upon the Finance Ministry’s proposal to continue measures aimed at supporting those in difficulty due to the COVID-19 pandemic after 1 January 2021 as well.
Ludovic Orban met with Romanian Associations of Banks (ARB)’s representatives
On Friday, the President of the Chamber of Deputies Ludovic Orban participated, at Parliament, in a meeting with the Romanian Associations of Banks (ARB)’s representatives. According to a press statement, participants in the meeting discussed legislative solutions to increase lending in economy and to facilitate companies and individuals’ access to financial-banking resources, for their own development needs.
Tech start-up SuperOkay attracts new EUR 400,000 financing round
SuperOkay, a technology start-up founded by two Romanians from Great Britain, has attracted EUR 400,000 financing for the development of the agency-client contract management and collaboration platform, targeting the digital services market. The investment round, led by the Eleven Ventures fund and completed by RocaX and other business angels from UK, is aimed at increasing SuperOkay team and at expanding the client base.
Three young people open boxing fitness gym in Timişoara
Victor Balaniuc and Darius Tapalagă, the entrepreneurs who own several companies under Balvia Group, and Alexa Vlad have opened a boxing fitness gym with smart equipment, under the Legend brand, in the city of Timişoara. This is the first smart boxing gym in Romania, a unique and innovative concept that combines sport with technology and entertainment. The total investment amounted to EUR 200,000.
CTP announced EUR 200 million investments in Poland
CTP, the biggest owner of logistics and industrial spaces in Romania, has announced a partnership with the Polish company MDC for the development of logistics parks throughout the entire Poland. Construction works on the first such units will start in Q1 of this year, and CTP’s investment for 2021 amounts to EUR 200 million. Developer CTP activates on seven markets in Central and Eastern Europe, with operations in the Czech Republic, Slovakia, Romania, Serbia, Hungary, Bulgaria and Poland.
Minister of Development verified works on two investment projects in Satu Mare County
On Saturday, Development Minister Cseke Attila checked the evolution of works on two investment projects in Satu Mare County, financed through programs carried out by the Ministry of Public Works, Development and Administration. The first investment is included in the second phase of the National Local Development Program (PNDL) and targets the construction of a bridge over the Someş River in the city of Satu Mare, the overall project being worth more than RON 168 million. The second investment is a sports hall with a 180-seat stand in Moftin Commune, worth RON 9.6 million.
An MP proposes higher sanctions for Parliamentarians’ absences without leave
On Friday, National Liberal Party (PNL) MP Sebastian Burduja submitted a draft law which stipulates considerable increases in sanctions imposed for Parliamentarians’ absences without leave. If the draft law is approved, MPs can lose up to 10% of their gross pay. The penalty is currently ten times lower. In his statement of reasons, Mr. Burduja indicated that Parliamentarians’ absence from work represented a problem for Romania’s legislative body.
Ministry of Finance has drawn up a draft Ordinance on a new tax
The Ministry of Finance has drawn up a draft Ordinance proposing that part of the gift vouchers (mainly granted to public sector employees) should be included into mandatory social security contributions’ calculation base. The gift vouchers granted at Easter, on 1 June, at Christmas and on similar holidays of other religious cults within the limit of RON 150 per event per person will be exempted from the aforementioned inclusion.
PSD leader Marcel Ciolacu is to meet with some European officials
In the first half of this week, Social Democratic (PSD) leader Marcel Ciolacu is to have several online meetings with European officials, including European Commissioner for Jobs and Social Rights Nicolas Schmit and European Commission Executive Vice-President Frans Timmermans (Party of European Socialists). Moreover, according to sources from the media, there will also be a meeting with Maros Sefcovic, European Commissioner Vice-President and head of PES Eastern Europe.
Another 200 anti-COVID-19 vaccination centers will be opened starting from mid-March
The coordinator of the anti-COVID-19 vaccination campaign, Valeriu Gheorghiţă has stated that another 200 vaccination centers which Pfizer vaccine will be distributed to will be opened starting from mid-March. He has added that 180 centers where AstraZeneca vaccine will be used will also be opened as of February.