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Daily Newsletter - 9 March 2021

Summary

FIC Daily Newsletter | 09.03.2021
FIC (0) || Macroeconomic (3) || Financial (3) || Investment (3) || Legislative (3) || European News (1) || Social (2)
CNIPMMR proposes a EUR 1.23 billion program aimed at supporting SMEs
The National Council of Small and Medium-Sized Enterprises in Romania (CNIPMMR) has proposed the “SME Restart Romania” Program, aimed at supporting SMEs amid the economic crisis generated by the COVID 19 pandemic. According to CNIPMMR, the level of development of the SME sector in Romania is lower than the European level. The program would have a EUR 1,231,452,000 budget.
Over 80% of entrepreneurs believe this year’s economic environment will not be favorable for business development
16.7% of entrepreneurs believe that this year’s economic environment will be favorable for business development, according to the results of a survey conducted by the National Council of Small and Medium-Sized Enterprises in Romania (CNIPMMR) and presented during a press conference yesterday. Another 41.4% estimate that the current year is unfavorable for business development, and 41.8% of the surveyed entrepreneurs consider that the economic environment in 2021 is neutral.
According to BCR, economic activity accelerated in February
Economic activity accelerated in February and reached 92% of the average of a normal pre-Covid-19 month, BCR Research analysts indicate in a research note. According to BCR’s high frequency index, economic activity stood at 83% in December and at 85% in January. In February, BCR revised upwards its GDP growth estimate for Romania to +4.2% this year.
Braşov County recorded the highest growth rate of companies and population’s deposits balance
Bucharest – Ilfov recorded a RON 109.39 billion balance of companies and population’s RON and foreign currency deposits at the end of 2020, up by 15.2% against the level recorded at the end of 2019, according to NBR data. Bucharest – Ilfov thus leads the ranking of the top 10 counties with the largest deposit balances at the end of last year.
Finance Ministry rejected all offers submitted by banks within yesterday’s bonds tender
Yesterday, the Public Finance Ministry (MFP) rejected all the offers submitted by banks within the tender for a 64-month government bonds issue, through which it planned to attract RON 400 million, as it considered the offered price was unacceptable. The banks to have participated in the tender transmitted RON 627 million total bids.
NBR did not buy RON-denominated government bonds from secondary market in February
The National Bank of Romania (NBR) did not buy RON-denominated government bonds from the secondary market in February either, according to the statistical report published by the central bank, considering that the banking sector maintained the liquidity surplus last month, after having resumed it in January, for the first time since the beginning of the Covid-19 health and economic crisis. The banking system’s liquidity deficit towards NBR was constant in the last two months of 2020, of about – RON 0.6 billion, while the surplus in January stood at RON 8.3 billion.
Health-tech start-up Medic Chat targets a EUR 250,000 investment on SeedBlink
Medic Chat, a telemedicine platform in Romania which offers access to online medical advice, is targeting a EUR 250,000 investment, of which more than one third has already been ensured by Cleverage VC and an angel investor from the USA, while the remaining sum will be obtained by listing on SeedBlink, the platform for investments in tech start-ups. The listing will take place on 9 March, at 10.00.
Evergent Investments to place 40% of its resources into private equity investments
SIF Moldova (SIF2, rebranded to Evergent Investments) is to directly invest between EUR 2-3 million and EUR 10 million in companies outside the Stock Exchange, through private equity operations, especially in intensive agriculture and real estate, but also in other fields. About 40% of Evergent’s assets will be in medium-risk private equity investments with an over 15% profit rate, according to Evergent General Manager Claudiu Doros.
ANA Hotels invests EUR 25 million in Athenee Palace Hilton Hotel’s renovation
ANA Hotels has announced that it has started a EUR 25 million investment in the capital renovation of the "Athenee Palace Hilton" Hotel in Bucharest. The hotel modernization project will be carried out in two stages. The first one has already started and includes the renovation of the 132 rooms of the "New Wing", built in 1965, and the second stage targets the rehabilitation of the hotel’s facade and of the rooms in the "Old Wing".
Klaus Iohannis approves the law regarding Loan Agreement between EU and Romania
On Monday, President Klaus Iohannis promulgated the law approving Government Emergency Ordinance (OUG) on approving the EUR 4,099,244,587 Loan Agreement between the European Union and Romania. The Chamber of Deputies had adopted the draft law, as the first notified body, on 22 November 2020, and the Senate had adopted it, as the decision-making chamber, on 15 February 2021.
2021 State Budget Law has been promulgated
The Presidential Administration announced yesterday that President Klaus Iohannis promulgated the State Budget Law and the Social Security Budget Law for 2021. According to the head of state, investments, reforms and economic growth are the pillars 2021 budget has been built on so that the principles of fiscal-budgetary responsibility and public finance sustainability should also be observed.
Klaus Iohannis promulgated law amending normative act on CNI’s establishment
Yesterday, President Klaus Iohannis promulgated the law approving Government Emergency Ordinance (OUG) 95/2020 amending and completing Government Ordinance 25/2001 on the establishment of “C.N.I.-S.A.” National Investment Company. The draft law had been approved by the Chamber of Deputies, as the decision-making body, on 10 February.
Social pillar will define next decade of European policy
The action plan for a European Pillar of Social Rights will mark the next decade of European policies, European Commission advisor on social rights José António Vieira da Silva has said. Speaking to EURACTIV’s partner Lusa, Vieira da Silva explained that the action plan the European Commission presented on Thursday details the instruments to realise the principles that guide the EU bloc’s social policy, approved by EU leaders at the 2017 Social Summit in Sweden.
Age restriction for AstraZeneca vaccine has been lifted
The National Committee for the Coordination of Anti-COVID-19 Vaccination Activities has announced that the age restriction for the AstraZeneca vaccine has been lifted. As a result, the vaccine can be administered to all persons aged over 18, given that until now it was only intended for those up to the age of 55. The measure comes following the emergence of new scientific data, the experience and decisions of other European countries, as well as the World Health Organization’s recommendations.