Daily Newsletter - 8 January 2021


Macroeconomic News (5)

EC warns Romania over public debt

The European Commission warns of the worrying situation facing the Romanian economy, noting that the country's fiscal situation continued to deteriorate substantially in 2020. In this context, the EC wants to work with the Romanian authorities on the draft budget for the current year.


Consumption slowed down in November

The retail sector turnover, the main indicator of population consumption, increased by 5.1% in seasonally adjusted figures in November, compared to the corresponding month of 2019, according to the data released by the National Statistics Institute (INS).


Confidence in national economy shows signs of recovery

The indicator tracking the general confidence in the Romanian economy, calculated by the European Commission, increased slightly in December, after two consecutive months of decline, but remains below October's figure. In January, 2020, before confidence was diminished by the effects of the Covid-19 pandemic, the indicator stood at 105.4 points.


Minister of Economy says waiving taxes on minimum salary is best option

The Minister of Economy, Entrepreneurship and Tourism, Claudiu Nasui, said he does not give up the idea of eliminating taxes on the minimum national salary, one of the measures touted by USR-PLUS in the recent election campaign. Nasui announced that this project could be implemented next year, starting with the agriculture sector.


Number of new foreign capital companies down 27.1%

The number of new foreign capital companies established in Romania decreased to 3,715 in the first 11 months of 2020, down 27.1% compared to the corresponding period of 2019, according to data centralized by the National Office of the Trade Registry (ONRC). The 3,715 new companies subscribed capital worth USD 19.828 million, up 1.7% compared to the previous year.


Financial News (3)

CEC Bank and ZebraPay sole bidders for IR contract

The team formed by CEC Bank and ZebraPay was the sole bidder for the National Printing House (IR) contract to collect the fees for issuing passports, temporary residence permits, and travel documents to foreign citizens. The three-year contract was estimated at RON 14.74 million.


Corporate borrowing down in November

The value of new RON-denominated corporate loans was RON 2.44 billion in November, 2020, up 4.5% compared to 2019. After the first 11 months of 2020, RON-denominated corporate loans reached RON 28.9 billion, an increase of 11% from 2019. Corporate loans denominated in foreign currencies dropped about 23% year-on-year.


UniCredit advised Credit Agricole

UniCredit's Corporate Finance Advisory team advised Credit Agricole during the selling of its Romanian branch to VISTA Bank. The buyer is the Vardinogiannis Group, a major Greek industrial conglomerate, one of the biggest in South-Eastern Europe.


Legislative News (1)

KPMG: The new Fiscal Code adapts Romania to the new reality by eliminating some discrimination

The new Fiscal Code, which came into force on January 1, 2021, has brought Romania in line with the new reality by eliminating discrimination, simplifying the complexity of tax compliance, and aligning with international norms in the context of the globalized economy, according to a KPMG statement.


Politics (2)

President Iohannis met with PM, ministers

President Iohannis met on Thursday with the Prime Minister and the Ministers of Transport, Economy, Justice, Investment and Health.


PSD says President, PM failed to react to Washington events

"Florin Citu and Klaus Iohannis are the only Romanian state officials and among the few Western decision-makers who have so far had no reaction to the events in the United States! We know that they are concerned that the cap they received had nothing to do with establishing serious and strong relations with the United States, but their deafening silence confirms a worrying lack of political vision," reads a PSD press release.


Social (1)

Minister of Education meets with unions

School classes will resume on February 8, unless the pandemic surges again, and students will have to take extra classes in order to recover some of the lost time, according to statements made after yesterday's meeting between the Minister of Education, Sorin Cimpeanu, and the representatives of education unions.