September 22nd, 2020

Romanian companies become more visible internationally

Romanian companies become more visible internationally and have more access to big financial backers all over the world, which means funds of tens of billions of euro, following a decision, considered historical, taken by the FTSE Russel Financial Value Agency who, starting yesterday, took the Romanian capital market to a superior level, of emerging market. The effects will be felt in time by the entire Romanian economy that would become stronger and more competitive, after the great international investors will focus on Romanian firms.

In the beginning, three companies listed in Bucharest will be included in the evaluation of indexes dedicated to emerging economies, one of which in the micro category. NUCLEARALECTRICA, a society in which the Romanian state is the main shareholder, and Banca Transilvania, the most transitioned company from BVB, have met the criteria to be included in the calculus of indexes representative for emergent markets and TERAPLAST for the micro category.

The moment of the capital market promotion has been marked by an official opening of the stock exchange, on which occasion, the authorities’ representatives and those of the capital market have underlined the importance of this step, which opens the possibility that big international investors to enter the local stock market.


The number of exclusively online schools in Romania has dropped

According to data published by the Education Minister, the number of schools who use online classes exclusively has dropped. Yesterday, 305 education units were in the red scenario, compared to 312 at the end of last week. In the green scenario, with all pupils back in the classrooms, there are eight less schools, compared to last Friday. The number of education units following a yellow, mixed scenario, has risen above 4,400. Things can change at any moment, as yesterday more cases of pupils and teachers diagnosed with COVID-19 were confirmed. Activities in some classes will move online in Brăila, Iaşi, Piatra Neamţ, Deva, Arad and Galaţi. In Mehedinţi county, 23 pupils are isolated at home after contacting a colleague who has been tested positive and more than 160 students in a high school from a town entered the red scenario yesterday.


The NBR warns about increasing pensions

Yesterday, the National Bank of Romania joined other voices to warn against increasing pensions by 40%. This measure would lead to an increase of the budged deficit in 2021 to more than 11% of the GDP, according to the Convergence Report 2020, published on the site of the National Bank. It is possible to generate a great systemic risk by worsening the state of the public budget, followed by a reaction of the financial markets which could seriously affect the economy, making recovery in 2021 more difficult – the specialists from NBR think. “Instead of an ordinated correction on several years, we would be forced to a disordinate correctio which would be very costly, economically and socially”.


Alexandra Ioniţă