News

Daily Newsletter - 9 July 2020

Summary

Macroeconomic News (3)

PM pledges to support milling-bakery sector

Prime Minister Ludovic Orban met on Wednesday with representatives of the the Romanian Employers' League Of The Milling, Bakery And Flour Based Products Industry (ROMPAN), the Food Industry Employer Federation (Romalimenta), and the supermarkets in order to discuss ways of helping this industry. The PM declared himself willing to consider a state loan program to help bakers secure the wheat they need for this year.

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President signed budget review bill

The consolidated state budget will be capped at -6.79% of the GDP this year, compared to the -6.7% forecast released at the end of April. The budget deficit cap was amended by the Parliament last week in a bill that President Iohannis signed today, with a series of amendments.

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State aid for farmers

The Cabinet is planning to approve a state aid program targeting the farmers whose autumn crops have been affected by the drought. The program will cover 40% of the eligible cost for every crop, provided that more than 30% of a farmer's acreage is affected by drought, and the total budget for the program is RON 1.08 billion.

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Financial News (4)

BCR reports 73% increase in savings accounts

BCR announced on Wednesday that the number of savings accounts opened by retail clients in the first half of this year increased by 73%, with more than 93% of accounts opened through the George application. Meanwhile, deposits increased by 18%, compared to the corresponding period of 2019.

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CSALB received 1,040 applications from bank clients and 290 from NBFI clients

The Alternative Banking Dispute Resolution Center (CSALB) received 1,040 applications from bank clients and 290 from NBFI clients in the first six months of this year. So far, more than 260 applications have been approved by the banks for negotiations, compared to only 11 by the NBFIs.

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ING launches DealWise platform

The ING banking group has expanded into the online commerce sector with the launching of the DealWise shopping platform. The bank already had a deal bazaar for clients.

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CCR postpones interest cap ruling

The Constitutional Court of Romania has postponed for September 23 its ruling on the bill capping interest rates. The complaint against the bill protecting consumers from excessive interest rates had been filed by deputies belonging to the National Liberal Party (PNL).

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Investment News (1)

Iulius builds Palas Campus

Real estate developer Iulius has started building the Palasa Campus in Iasi, one of the biggest office buildings in Romania. The project is worth a total of EUR 120 million and is scheduled for completion in 2022.

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Legislative News (2)

Extended financial restructuring bill comes into force

The financial restructuring mechanism, through which companies that owe money to the state can benefit from the cancellation of all late charges and fees, as well as partial debt to equity swaps, will be extended to cover the arrears recorded on July 31, 2020, according to a bill promulgated by the president. The bill will come into force within three days of its publication in the Official Monitor.

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President urges Parliament to pass quarantine bill quickly

President Klaus Iohannis urged politicians on Wednesday to avoid using the pandemic for political purposes and to support the Cabinet in finding ways to deal with the situation. "For now, I think we have the power to avoid more complicated administrative moves, but if the situation worsens and we cannot find another way, then we could return to more restrictive measures. Once again: I do not want this," said the President when asked about a possible return to the state of emergency.

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Politics (2)

PSD gathers support for motion of censure

The Social Democratic Party (PSD) wants to bring down the Orban Cabinet through a motion of censure before the local elections. The document put together by Serban Nicolae features a "transition" cabinet that would run the country until the parliament election.

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PSD to support "No Criminals in Public Office" referendum

Lucian Romascanu, spokesman for the Social Democratic Party (PSD), said the party's National Political Bureau had decided to support the "No Criminals in Public Office" referendum. The referendum was launched by the Save Romania Union (USR) and will be held on August 23.

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Social (2)

Number of COVID-19 cases surges to new high

555 new cases of COVID-19 were reported in the past 24 hours, the highest daily figure since the beginning of the coronavirus pandemic. Laboratories across the country processed 13,147 tests.

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PMB launched coronavirus testing project

The Bucharest City Hall (PMB) launched on Wednesday a project for testing 3,000 pharma, restaurant & bar, mass-media, and delivery employees for COVID-19, along with the athletes from the Bucharest Municipal Sports Club (CSMB).

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