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Daily Newsletter - 9 February 2021

Summary

FIC Daily Newsletter | 09.02.2021
 Macroeconomic (2) || Financial (3) || Investment (1) || Politics (3) || Social (2)
Prime Minister Florin Cîţu spoke about this year’s state budget
Prime Minister Florin Cîţu announced yesterday that this year’s draft state budget would be put up for public debate on Tuesday or on Wednesday and would be based on a budget deficit of 7%-7.1% of the Gross Domestic Product (GDP). He added that the draft budget would be accompanied by several tax measures to be promoted either through an emergency ordinance or through a draft law.
State-owned companies have not presented any restructuring plan yet
State-owned companies have not presented any restructuring plan yet, not even those who have been operating at a loss, Prime Minister Florin Cîţu stated yesterday, pointing out that he maintained his decision to only grant subsidies to profitable state-controlled enterprises. He had previously said that 2021 budget started from the idea of not wasting public money and that salaries in the public administration had doubled in four years, but performance had failed to keep up.
The interbank market started 2021 with a liquidity surplus
The interbank market started 2021 with a liquidity surplus, and banks that recorded excess liquidity in RON resorted to the one-day deposit facility offered by the National Bank of Romania (NBR) in January. The sum deposited by banks at NBR through this facility stood at RON 8.4 billion in January, the highest monthly level of the past almost three years. Higher values of sums placed by banks at NBR through the one-day deposit facility had been recorded in Q1 of 2018.
The Public Finance Ministry borrowed RON 951.4 million from banks
Yesterday, the Public Finance Ministry (MFP) borrowed RON 951.4 million from banks, through a benchmark government bonds issue, with 31-month residual maturity and 1.99% average annual yield, according to data transmitted by the National Bank of Romania (NBR). The nominal value of the issue was RON 600 million, and banks subscribed over RON 2.411 billion.
Banks in Romania granted RON 84 billion new retail and corporate loans in 2020
Banks in Romania granted RON 84 billion new retail and corporate loans in 2020, little above the RON 83.24 billion level recorded in 2019, according to data announced by the Romanian Association of Banks (ARB) yesterday. The Association indicated that banks had absorbed the liquidity problems of clients whose revenues had been affected by the Covid-19 pandemic.
Real estate developer Impact contracted two loans from First Bank
Impact Developer & Contractor, a real estate developer controlled by businessman Gheorghe Iaciu, has contracted two mortgage loans, worth about RON 34 million altogether, from First Bank. The loans are to finance a new phase of Greenfield residential project, built by the company in Băneasa area in Bucharest. At the end of last year, the company announced the almost integral sale of the stock of apartments built in the first three development phases of the complex and the continuation of works on the project’s expansion.
Government no longer grants holiday vouchers in 2021
Prime Minister Florin Cîţu has informed the Liberals that the Government will cut holiday vouchers and public sector employees’ bonuses and will reduce students’ transport subsidy in 2021, sources from the party told HotNews.ro. Expenditures from the state budget would thus be reduced by RON 1.8-2 billion, according to the aforementioned sources. The Prime Minister has explained to the Liberals that holiday vouchers that were not spent in 2019 and 2020 will be used this year and new ones will be granted next year.
PNL leader Ludovic Orban spoke about Ombudsman Renate Weber’s dismissal
National Liberal Party (PNL) leader Ludovic Orban has stated that Ombudsman Renate Weber’s dismissal will be achieved as soon as possible, but it depends on the party’s ruling partners as well. Referring to Florin Iordache’s dismissal from the helm of the Legislative Council, he has indicated that working groups were formed, who have to present an action plan for each institution within the next two weeks.
Prime Minister Florin Cîţu to go on an official visit to Brussels
Prime Minister Florin Cîţu is to go on an official visit to Brussels on 11-12 February, the Government has announced. The head of the Executive will meet with European Council President Charles Michel, European Commission President Ursula von der Leyen and European Parliament President David Sassoli, as well as with the European Commission Executive Vice-Presidents Frans Timmermans, Margrethe Vestager and Valdis Dombrovskis. Moreover, Prime Minister Cîţu’s agenda includes official meetings with European Commissioner for Transport Adina Vălean and with NATO Deputy Secretary General Mircea Geoană.
More than 55% of Romanians want to get the anti-Covid-19 vaccine this year
More than 55% of Romanians want to get the anti-Covid-19 vaccine this year, according to a survey conducted by the Inscop Institute during the period 13 January – 3 February 2021. 49% of those who do not intend to get vaccinated say their decision on the matter is final, while 49% say they might change their mind in the future.