The interest burden is increasing for the state as public debt has also
grown considerably in recent years and has exceeded 50% of GDP earlier
this year. State debt remained above 50% of GDP in March, for the third
consecutive month above this threshold. The government, which has just
reported the highest quarterly economic growth in the EU, with the
economy having unexpectedly grown by 5.2% quarter-on-quarter in the
first three months of 2022 and by 6.5% year-on-year, is trying to
minimize this interest rate problem so that it can continue to borrow
as much as possible without any hindrances, but the situation is far
from good for Romania. At 50%, Romania’s debt, although it has
increased in recent years, is below the European average.
Total volume of construction works grew by 6.5%, as a gross series, in
the first three months of 2022. By structural elements, increases were
recorded by current maintenance and repair works (+15%), capital repair
works (+5.1%) and new construction works (+4.1%). By purpose of
construction, advances have been reported on non-residential buildings
(+18.3%) and residential buildings (+18%). Engineering constructions
decreased by 7%, according to data from the National Institute of
Statistics. Moreover, the volume of construction works was up 4.1% in
Q1/2022 as a working-day and seasonally adjusted series, with increases
in current maintenance and repair works (+9.4%), capital repair works
(+2.8%) and new construction works (+2.2%). By purpose of construction,
advances were recorded in residential buildings (+21.2%) and
non-residential buildings (+16.2%).
Raiffeisen Bank has increased interest rates on RON-denominated
deposits for individuals by 0.50%-2% per year amid the rising
inflation. The biggest increase, of 2% above the initial interest rate,
has been applied to 12-month deposits. As a result, the bank now offers
a 4% annual interest on this maturity. The highest interest rate in RON
paid by Raiffeisen Bank is of 4.25% per year, for household deposits
with two-year maturity. Moreover, the interest rate on the six-month
Flexi deposit has grown to 3.5%. The Super Access Plus savings account
in RON comes with 1% annual interest and zero opening, management or
Consumers who hold a Visa card issued in Romania and enroll it into the
SanoPass app will instantly receive 10% cashback, via the Visa Direct
service, for all transactions made through the platform until 30 April
2023. Moreover, Visa cardholders will also benefit from free fitness
services in the SanoPass network of partner gyms, as well as from free
examinations and investigations via telemedicine, for one month after
adding their card into the app.
ING Bank Romania has granted an over EUR 20 million loan to United
Romanian Breweries Bereprod (URBB) group, also known as Tuborg Romania,
to refinance existing loans and finance new sustainable investment
projects, according to a press release. The investments are directed
towards Tuborg’s plant in Pantelimon and are aimed at increasing the
capacity of the wastewater treatment plant, as well as at new
technologies to streamline the production process, with direct benefits
on product quality and the brewery’s activity. The long-term loan is
bilateral, with ING being the sole lending bank.
Bacolux Hotels Romania Group is to open the newest hotel in its
portfolio - Bacolux Koralio Eforie Nord at the beginning of June,
following an over EUR 7 million investment. The four-star hotel Bacolux
Koralio will have 212 rooms and suites, a restaurant (lounge and
outdoor terrace with a capacity of 400 seats), a lobby bar, as well as
three fully equipped conference rooms. The hotel will also include
three heated outdoor swimming pools - one for adults, which will have a
bar and terrace, and two children’s pools with three water slides.
Popeyes Romania has announced the opening of two new restaurants in
Bucharest this summer and has started recruiting future team members.
Following the success of the first restaurant opened in the country, in
Băneasa Shopping City, at the beginning of April 2022, Popeyes Romania
continues its strategy of expanding its network with two new
restaurants in ParkLake Shopping Center and AFI Cotroceni, which will
be inaugurated this summer. Popeyes offers over 100 new jobs and some
of the most attractive entry-level salaries on the Romanian QSR market.
Hyundai Motor Group announced on Wednesday that it planned to invest a
total of 21,000 billion won (USD 16.54 billion) by 2030 for the
expansion of its electric vehicle (EV) business in South Korea. The
South Korean automotive group, which includes Hyundai Motor and Kia
brands, plans to annually build 1.44 million units of electric vehicles
in South Korea by 2030. Last year, Hyundai Motor Group said it intended
to invest USD 7.4 billion in the United States by 2025 to produce
electric vehicles, upgrade production facilities and further its
investment in smart mobility solutions - technology to improve
different modes of transportation in cities.
The Constitutional Court of Romania (CCR) has unanimously approved the
challenges filed by Save Romania Union (USR), by the Ombudsman and by
41 deputies from the Alliance for Romanians’ Unity (AUR) against the
so-called "Electronic Communications Law". As a result, parts of the
law almost unanimously voted by Parliament have been declared
unconstitutional. The rapporteur-judge for the ruling was magistrate
Daniel Morar, the former chief prosecutor of the National
Anti-Corruption Directorate (DNA).
Law 22/2022, a project initiated by Save Romania Union (USR) MP Diana
Buzoianu, introducing a visa for digital nomads, was promulgated in
January 2022. With the adoption of this law, Romania joined the states
that can attract digital nomads and their resources into the country,
offering long-stay visas to these foreigners, according to a press
release issued by USR. The introduction of a new concept in Romania’s
legislation, such as the "digital nomad", also means adapting other
areas to the new reality in order for Romania to be competitive.
Digital nomads are foreigners from third countries who come to travel
to Romania for a longer period of time and work remotely for a company
outside the EU.
The Romanian parliament approved a new law on deep oil and gas
operations, which is expected to unblock gas projects in the Black Sea,
with 249 MPs in favor and 34 against. Last week, the bill was approved
by the Senate, parliament’s upper chamber, meaning it will now be
handed over to President Klaus Iohannis to sign into law. According to
the new legislation, the Romanian state will have preemption rights on
gas sales and will receive around 60% of the income generated by
exploration projects. But the law also promises to keep the tax regime
unchanged during the construction of these offshore gas projects.
Compared to the previous legislation, the tax on gas sales is reduced
and restrictions on gas exports removed, except for emergencies.
70% of participants in a survey conducted by BestJobs recruitment
platform said they felt they lived life more intensely when they were
fulfilled at work and in their job, even more than when spending time
with loved ones (48%). In this context, BestJobs has launched a
manifesto calling on people to never stop looking for the job that
brings them satisfaction and that they are passionate about. According
to the BestJobs survey, in addition to financial fulfilment, employees’
level of job satisfaction is influenced to a significant extent by the
feeling that their work matters (41%), as well as by professional
development opportunities (18%).
More than 90% of parents in rural areas say their children’s eyesight
has been affected by the pandemic in the past two years, 42% of them
being concerned that vision problems have become worse or very serious,
according to a survey conducted by World Vision Romania. The foundation
will organize information and visual acuity testing sessions for 6,000
children and adults in rural communities.