State aid scheme 332/2014 reopened
The Ministry of Public Finance (MPF) announces to the business community that applications for financing can be submitted based on H.G.nr.332 / 2014 for the establishment of a state aid scheme to support new investments, which promotes regional development by creating jobs.
The objective of the state aid scheme is regional development by making investments that determine the creation of at least 100 jobs and encourage the active participation of enterprises in reducing economic gaps between regions and the recovery of the Romanian economy. The scheme finances the salary expenses registered for a period of 2 consecutive years, as a result of the creation of new jobs. Amounts are granted in the form of grants, from the state budget, for eligible expenses in the nature of salary costs. In 2020, for both state aid schemes administered by MPF (established on the basis of H.G. no. 332/2014 and H.G. no. 807/2014) a budget of 1.5 billion lei was allocated.
Implementation of strong customer authentication (SCA) mechanisms for online card payments
In order to ensure a higher degree of security for electronic distance payment operations, a number of normative acts have been issued at EU level establishing the obligation for payment service providers to apply strong customer authentication procedures whenever they accesses their payment account online or performs an electronic payment transaction. The European Banking Authority has set a deadline, 31 December 2020, for the implementation of the new strong customer authentication solutions for e-commerce transactions. The principles underlying the new security requirements regarding strong customer authentication have also been established (SCA). Thus, when accessing the payment account online or performing electronic payment operations, the payer’s bank will use for its strong authentication at least two elements classified in two of the following categories of identification factors:
- knowledge – something that only the customer knows, such as the PIN code, a password;
- possession – something that only the customer has, for example possession of a device tested by password sent via text;
- inherence – something that the client is, such as fingerprint, facial recognition or other elements of biometrics.
The National Bank of Romania monitored the migration process to the new SCA solutions at the national market level and, according to the information provided by the payment service providers, found that they are at an advanced stage, which will allow the implementation of strong authentication measures of customers until the deadline set by the European Banking Authority.
New EU telecom rules
The 21st December 2020 marks the deadline for Member States to transpose the new EU telecom rules into national law. The European Electronic Communications Code, which entered into force in December 2018, modernises the European regulatory framework for electronic communications, to enhance consumer’s choices and rights, ensure higher standards of communication services, as well as boost investment for more connectivity and more digital innovation.
In line with the Code, on 18 December, the Commission also adopted legislation to reinforce the existing objectives of competition and internal market, protect consumers and allow fair rates and varied offers for internet and telephone services. These measures include: a new Delegated Regulation setting single maximum Union-wide voice termination rates that operators are allowed to charge each other for delivering fixed and mobile calls between their networks and an updated Recommendation on Relevant Markets, updating the list of predefined markets which European National Regulatory Authorities are required to regularly review.
Romania generated 2.5 billion euros from foreign capital markets
The Eurobond issue launched on November 24, 2020 by the Ministry of Public Finance enjoyed an extremely high interest from investors, which reconfirms Romania’s status as a major issuer in Central and Eastern Europe.
The transaction also marked a series of notable performances in the history of issues made by Romania on foreign capital markets: the 1.468% yield for the 9-year tranche is the lowest yield ever offered by Romania for an issue denominated in euro; obtaining negative issue premiums for both tranches through the most significant cost reduction compared to the values from the announcement of the launch of the issue; the second highest demand (after the transaction in May, this year) ever recorded in an issue denominated in euro by investors before the final cost of the issue was established (with an order of over 12 billion euros), but also at the close of the transaction, when the level of demand remained at a record level of 11.6 billion euros.