On
\nWednesday Bucharest played host to the first meeting of a mixed institution
\ngroup charged with evaluating the economic, financial and budgetary effects of
\nthe COVID-19 in Romania. Chaired by President Klaus Iohannis, the meeting
\nbrought together National Bank Governor Mugur Isarescu and representatives of
\nthe Government and the business sector. The President called for a careful and
\nresponsible analysis of economic and social implications, at the same time
\ncalling on all institutions to limit the economic impact of the
\nepidemic-generated crisis. Measures must factor in the interests of employees,
\nbusinesses and the budget, which entail various consequences and scenarios,
\nthe President said. The President of the National Council of Small and
\nMedium-sized Enterprises, Florin Jianu, says that particular assistance must be
\ngiven to companies experiencing financial difficulties in the fields of
\ntourism, transports and car manufacturing. <\/p>\n
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\n
\n
\n
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In
\nthese fields where we notice an immediate impact we can set up a system of
\nstate allowances that should basically help companies pay their employees. The
\nFinance Minister has discussed the possibility of postponing by 1-2 months the
\ndeadline for contributions. There have been several other proposals regarding
\nexports and various other fields. We all agreed that companies are facing a
\nshortage of orders and trade agreements, and therefore need working capital.
\nWorking capital can be obtained by getting zero-interest loans, guaranteed by
\nthe state, which means the state provides a fixed amount of money which is
\nmultiplied to help several enterprises.<\/p>\n
<\/p>\n
\n
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\n
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The
\nworking group will analyse all measures tabled for discussion and will announce
\nwhich measures will be adopted next week. Economic pundits warn that, unless
\nswift measures are taken, the economy will suffer dramatically. Professor of
\nEconomic Sciences Mircea Cosea told Radio Romania:<\/p>\n
<\/p>\n
\n
\n
\n
<\/p>\n
We
\ncan expect a number of unpleasant effects, which are a result of what’s
\nhappening in other countries and continents: enterprises shutting down their
\nactivities, banks experiencing difficulties. There are many aspects that will
\nmake the situation much worse, albeit we’re concerned only with the sanitary
\nside of things, so to say. We need to consider all the elements at work.
\nUnemployment is very likely to kick in, and we will soon see underperforming loans
\nthat will not be refunded. <\/p>\n
<\/p>\n
\n
\n
\n
<\/p>\n
One
\nday before the vote of investiture for his Cabinet, the Prime Minister
\nDesignate Florin Citu said Romania has the necessary resources and fiscal
\ninstruments to deal with any challenge related to the spread of the
\ncoronavirus. (translated by V. Palcu)<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
After years of growth, Romanian economy risks slowing down amidst reduced economic activity as a result of COVID-19 outbreak.<\/p>\n","protected":false},"author":105,"featured_media":84968,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[37738],"tags":[35339,19347],"coauthors":[],"class_list":["post-84967","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-today-in-the-news","tag-coronavirus","tag-romania"],"acf":[],"yoast_head":"\n