News

Daily Newsletter - 9 October 2020

Summary

Macroeconomic News (4)

Economy has yet to recovery

The Minister of Finance, Florin Citu, told the Banking Forum that the economy has yet to recover and that 2020 nothing more can be done to improve this year's figures. The new goal is to recover the losses in 2021. The minister would prefer to extend the current tax and debt breaks.

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VAT revenues to fall below 20% of all revenues

The turnover of the retail sector, the best indicator of private consumption, increased by 1.6% in August, compared to the corresponding month of 2019. While the increase is small compared to July's 4.7%, August was still the third consecutive month of growth after the contraction reported during the state of emergency. Consumption was the main economic growth drive over the past 10 years, as well as the main contributor to the state budget through VAT.

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Ministry of Economy to begin accepting grant applications

On Monday, October 12, the Ministry of Economy will begin accepting applications for micro-grants under Measure 1 of the state support program set up by Decree 130 of July 31, 2020. The grants are financed with EU funds and offered to companies in the context of the crisis caused by the COVID-19 pandemic.

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Romania exported almost 3.4 million tons of maize in H1, 2020

Romania exported 3.37 million tons of maize in the first six months of this year, an increase of more than 28% compared to the corresponding period of 2019, according to the Ministry of Agriculture and Rural Development (MADR). Revenues from these exports jumped 25.3% to EUR 665.45 million. Maize is one of the most exported products in the country, followed by wheat.

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Financial News (3)

CEC Bank offers financing to SMEs

CEC Bank has signed an agreement with the Ministry of Economy, Energy and Business Environment (MEEMA) and became a partner in the state support program that gives SMEs affected by the COVID-19 pandemic access to grants they can use to finance their current operations and investment projects, according to a press release. SMEs whose activity has been affected by the COVID-19 pandemic, including by the restrictions taken by the authorities, can apply for grants through this program.

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Strategic axes: EximBank-BR merger, CEC Bank modernization, setting up development bank

The Ministry of Finance (MFP) will approve, ten month behind schedule, the merger between EximBank and Banca Romaneasca, in accordance with the Ministry's strategic axes unveiled by Minister Florin Citu on Thursday. "You know very well that the EximBank-BR merger was done before we came to power. Since it had already been decided and could not be undone, I want it to be a successful merger," said Citu.

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ProCredit Bank, Raiffeissen Bank and Alpha Bank targeted by real-time phishing

CERT-RO, the National Cybernetic Security Incident Response Center, has identified over the past weeks a series of real-time phishing attacks against the clients of local lenders. The targeted banks are ProCredit Bank, Raiffeissen Bank and Alpha Bank.

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Investment News (2)

CNPR signed RON 200 million financing deal with EximBank

The National Romanian Post Company (CNPR) has signed a RON 200 million financing agreement with EximBank, which would allow the state-owned company to launch one of the biggest modernization and digitization programs in the last 40 years.

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Buzau City Hall lands EUR 2.6 million project

The Buzau City Hall has accessed a European project worth EUR 2.6 million for building an intermodal transport center in the city, including a park-and-ride system. The project is financed under the Regional Operational Program (POR) 2014-2020, Priority Axis 4.

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Legislative News (1)

Offshore law amendments already negotiated with investors

The Ministry of Economy has drafted some amendments to the offshore law, on which the exploitation of Black Sea natural gas depends, after negotiating the stipulations with the lease-holding investors. The bill will be sent to Parliament after the election, according to Secretary of State Niculae Havrilet.

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Politics (1)

Ponta: PSD is very busy fighting us

Victor Ponta, leader of the Pro Romania party, accused the Social Democrats of being busy fighting Pro Romania and ALDE. "PSD cannot change. While we're fighting Mr. Orban, Mr. Iohannis, Mr. Barna, the PSD people are very busy fighting us. This is the worst sign they could have ever given," said Ponta.

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Social (2)

COVID-19 pandemic passes new milestone

3,130 new cases of COVID-19 were reported for the past 24 hours, a new record since the beginning of the pandemic. Another 44 Romanians died from the virus and 607 patients are in intensive care.

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Romania has highest number of employees at risk of poverty

Romania ranks first in the European Union based on the number of employees facing the risk of poverty. The figure was 15.7% in 2019, compared to an EU average of 8.9%, according to the Social Monitor. Although the situation has improved compared to 2015, Romania is still doing worse than any other EU member.

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