Ministry of Finance reopened an issue of benchmark government bonds, maturing in April 2035, and borrowed RON 599 million from banks on Thursday, 19 September, compared to the programmed value of RON 200 million, at an annual interest rate of 6.8%. Seven primary dealers, i.e. those who bought the bonds, participated in the auction, having submitted bids both on their own account and on behalf of individual and corporate clients.
The turnover of market services provided to the population decreased by 1.9% as a gross series and by 1.6% as a working-day and seasonally adjusted series in the first seven months of 2024, year-on-year, according to data from the National Institute of Statistics (INS). The decline was influenced by the lower turnover recorded by travel agencies and tour operators (-11.5%), hairdressing and other beauty activities (-8.3%), gambling and other recreational activities (-2.3%) and hotels and restaurants (-2.1%). Moreover, the turnover of market services provided to the population was up 9.3% on a gross basis and fell 1.8% on a working-day and seasonally adjusted basis in July 2024, compared to the previous month.
The National Commission for Strategy and Prognosis (CNSP) has lowered its economic growth projection for 2024 to 2.8%, from 3.4% previously, with the Gross Domestic Product expected to total nearly RON 1,769 billion. According to the Projection of Main Macroeconomic Indicators, published by the CNSP, GDP is expected to grow by 3.5% in 2025 and by 3.7% in 2026, with a downward trend to 3.3% in 2027 and 2.9% in 2028. Moreover, CNSP has forecast a 4.5% increase in final consumption and a 5.8% advance of investments for the current year.
The consolidated general budget deficit is 6.94% of GDP, up 1.94% from the initial program, according to the substantiation note accompanying the draft Emergency Ordinance on the state budget adjustment for 2024, published by the Ministry of Finance. The 2024 budget was initially built on a budget deficit of 5% of GDP. Following the budget adjustment, the consolidated general budget revenues will increase by RON 42.670 billion, the consolidated general budget expenditures will grow by RON 60.106 billion, and the consolidated general budget deficit in cash terms is RON 122.825.5 billion, the aforementioned document indicates.
The corporate insurance brokerage firm Aon Romania has recruited Cristina Lupulescu for the position of Regional Development Manager, as part of its expansion strategy in the Western region. The manager has 14 years of experience with Marsh & McLennan Companies, in risk consultancy and corporate insurance brokerage, and detailed knowledge of the market and its specific challenges. The Western region of Romania is one of the most dynamic and developed economic areas in the country.
NN Group - a Dutch financial services company present on the local life insurance and private pensions markets - and Rubio Impact Ventures fund have launched the NN Social Innovation Startup Awards competition dedicated to early-stage tech start-ups aiming to create a positive impact on society. The project covers 11 countries in Europe, including Romania, and Japan. The finalists will receive a EUR 50,000 support grant, while the winner will receive a EUR 100,000 grant, along with personalized support and access to a one-year entrepreneurial development program.
Starting from 23 September 2024, the National Bank of Romania will add to the list of exchange rates the indicative quotations of the Romanian leu against the Hong Kong dollar (HKD), the Israeli shekel (ILS), the Indonesian rupee (IDR), the Philippine peso (PHP), the Icelandic krona (ISK), the Malaysian ringgit (MYR) and the Singapore dollar (SGD). The exchange rates will be added to the current list in the above-mentioned order, before the price of gold and the SDR and after the Thai baht.
Raiffeisen Bank Romania has finalized the selection process for MoonShotX - a unique project on the local market, through which it supports companies with turnovers between EUR 5 million and EUR 50 million (Mid- Corporate) to expand their business regionally. After a selection period of three months, 22 companies were selected from a total of more than 760 companies analyzed. The jury to have selected the companies included 25 mentors and program partners, from companies such as Raiffeisen Bank Romania, Microsoft, IBM and DLA Piper.
Gebruder Weiss, one of the main players on the local transportation and logistics market, has officially inaugurated its second logistics hub near Bucharest, more precisely in Popești-Leordeni, completing the one located in Bolintin-Deal area. The investment amounted to EUR 20 million. The unit has an area of about 19,000 square meters dedicated to warehousing, goods handling and administration. The warehouse location allows the company to have a favorable transport connection to the port of Constanta and Bulgaria.
NewCold, an operator of automated cold storage warehouses, has entered the Romanian market by acquiring a nine-hectare plot of land in the northern part of Bucharest from logistics and industrial spaces developer and operator WDP. After five months of considering several scenarios, NewCold decided to acquire the land in question, which meets all the necessary criteria in terms of utilities, infrastructure and urban planning parameters. The operator is to build a state-of-the-art automated cold storage warehouse, to be finalized in 2025, which will serve its clients across the region.
Leroy Merlin, a retailer specializing in constructions, decorations and gardening, is to invest EUR 400.000, as main partner, in the construction of the new Bookland Vocational Campus to operate within a dual education system in Vulturești locality, Argeș Conty, a project officially announced through an event held at the campus location on 18 September. The new educational facility, with a total area of 72,000 square meters, aims to provide children in Argeș County with easier access to education, but also to vocational courses meant to guide students in their careers.
The Government has adopted a decision establishing the categories of expenses that the state will incur for fugitives who are extradited and brought into the country to serve their sentences, which will be borne by the latter. The list of expenses to be paid by repatriated fugitives includes the costs for translating the necessary documents, the travelling costs of the person escorting the fugitive, which consist of per diem and accommodation allowance, as well as occasional expenses for sending any documents or information necessary for the procedure.
Ministry of Finance has announced that the Romanian Government has put out for public consultation the Emergency Ordinance (OUG) on the adjustment of the state social security budget and of the unemployment insurance budget for 2024. The Ordinance aims to adjust the allocated funds, in line with the budget execution and the evolution of economic indicators in the first seven months of the year. The additional allocation of funds for the recalculation of pensions under Law 360/2023 and for the payment of unemployment benefits until the end of the year is among the main measures included in the Ordinance.
The Romanian Government has approved the draft normative act amending Law 24/2017 on issuers of financial instruments and market operations. The law will be sent to Parliament for debate and approval. The draft law was drawn up by the Financial Supervisory Authority, which intends to request a debate under an emergency procedure to ensure the swift implementation of the proposed measures, according to Gabriela Horga, Vice President of the Authority, Financial Instruments and Investments Sector.
Romanian President Klaus Iohannis requested parliamentary approval on Wednesday to establish a maritime training facility on Romanian soil to help train Ukrainian marines. In a letter to parliament, Iohannis highlighted recent developments in Russia’s war against Ukraine, saying they underlined the need to intensify and diversify the training of the Ukrainian armed forces. The proposal was made within the framework of the Ukraine Defense Contact Group (UDCG) —an alliance of 57 countries and the European Union supporting Ukraine’s defense —which operates a structured mechanism aimed at strengthening Ukraine’s maritime capabilities. The aim is to ensure coherent coordination of activities and efficient prioritization of resources.
The members of the Supreme Council for National Defense (CSAT) approved the National Plan for the Implementation of the Civilian Common Security and Defense Policy (CSDP) Compact during CSAT’s meeting held at Cotroceni Palace on Thursday, 19 September 2024. The decision was made amid the adoption by the European Union of a new Civilian CSDP Compact. It aims to improve civilian missions’ efficiency and speed of response in crisis management, even with limited resources, allowing greater flexibility in EU operations.
Ministry of Health announced on Thursday, 19 September, that the first notices of opportunity within the RON 13 billion program with the European Investment Bank (EIB) for medical infrastructure had been issued. The total value of the projects to have received the green light from the Ministry of Health on Thursday is RON 2 billion. A joint committee of experts in European funds and experts from the Ministry of Health will evaluate the financing projects which the beneficiaries will submit, together with all the supporting documents, to the Ministry of Investments and European Projects.