News

Daily Newsletter - 8 September 2020

Summary

Macroeconomic News (2)

More than 1.5 million local jobs depend on direct and indirect exports to third countries

Between 1.5 and 2 million local jobs depend on direct and indirect exports to third countries and the COVID-19 crisis could lead to a loss of 150,000-200,000 jobs, according to data presented by Lucian Cernat, chief-negotiator for non-tarrif industrial norms and international procurement with the European Commission.

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Current account deficit weighs heavier than debt service on national currency

The stable trend of the national currency was interrupted yesterday, when the RON fell 0.12%, down to RON 4.8552 per EUR. The public debt service will amount to a peak figure of EUR 2.1 billion this month, according to the National Bank of Romania (BNR).

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Financial News (4)

Online commerce supports swift development of logistics platforms

The logistics and industrial space market is constantly growing, with the FMCG and e-commerce sectors being the main sources for new space demand. In early March, before the pandemic crisis, consultants said that 2020 would be a record year for the local market, with about 700,000 square meters of space scheduled to be delivered, of which Bucharest accounted for about 400,000 square meters.

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MFP borrowed RON 938 million from banks

The Ministry of Finance (MFP) borrowed RON 938 million from the commercial banks through an issue of benchmark state bonds, featuring a residual maturity of 51 months, at an average yield of 3.22% per year, according to the National Bank of Romania (BNR). The nominal value of Monday's issue was RON 500 million, while the banks offered a total of RON 1.3 billion.

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SIF Banat-Crisana bought former IMGB plant

Investment fund SIF Banat-Crisana has bought a 99.92% stake in Doosan, the South Korean company that owned the IMGB site in the Bucharest neighborhood of Berceni. The transaction involving the 540,000 sqm property was brokered by Crosspoint Real Estate and law firm BirisGoran.

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Orkla Foods Romania revenues up 11%

Orkla Foods Romania, one of the biggest local producers of canned goods, reported an 11.4% increase in revenues for 2019, while the turnover reached RON 238 million, according to the Ministry of Finance. On the other hand, the company posted a profit of RON 6 million, after two consecutive years of losses.

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Investment News (2)

State's Q1 investment amounted to RON 16.1 billion

Investment spending, which include capital expenditures, as well as those related to the development programs financed from domestic and foreign sources, amounted to RON 16.1 billion in the first half of this year, according to a report from the Ministry of Finance (MFP). This is the highest figure in the last decade, but progress varies between 70% and 80%, compared to the targets set by the state budget.

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Dragos Bilteanu took control of Electromontaj

Businessman Dragos Bilteanu, former president of SIF Banat-Crisana, has become the majority shareholder of Electromontaj, the biggest builder of high-tension electric networks in Romania. His plan is to make use of the company's potential by entering the industrial-logistics sector of the real estate market.

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Legislative News (1)

President signs new Forestry Code

President Klaus Iohannis signed the amendments to the Forestry Code on Monday. The new bill implements harsher punishments for illegal timber harvesting, as well as the confiscation of all vehicles used to transport illegal timber.

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Politics (1)

PSD brings back 40% increase in pensions

The Social Democratic Party's (PSD) MPs eliminated by amendment the 14% increase in pensions proposed by the Cabinet through the budget revision bill. Thus, pensions are scheduled to increase by the original 40% decided by Parliament.

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Social (2)

Romanians bought more, cheaper goods

Romania's FMCG market expanded 12% in the first half of this year, compared to the corresponding period of 2019, according to a GfK study. Prices went up 5%, while the volume of shopping grew 9%, but consumers tended to focus on cheaper goods. The healthcare crisis and the restrictions forced consumers to change their shopping behavior.

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ITM issued fines worth more than RON 3 million

The Labor Inspectorate's (ITM) teams conducted a series of inspections between August 31 and September 5, issuing fines worth a total of RON 3.28 million to companies that fail to comply with the labor relations, safety and work safety regulations.

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