The global food price index fell in July, for the fourth consecutive
month, mainly as a result of significant drops in vegetable oil and
cereal indices, according to the Food and Agriculture Organization of
the United Nations (FAO). FAO Food Price Index (FFPI) is a measure of
the monthly change in international prices of a basket of food
commodities, consisting of cereal, vegetable oil, dairy, meat and
sugar. In July 2022, this index decreased by 8.6% compared to June, to
140.9 points, down from a revised value of 154.3 points reached in
June. Even though the index has fallen in the past four months, is
remains 13.1% above its value in July 2021.
The National Bank of Romania expects annual inflation rate to record
minor fluctuations during the period July-September (Q3) 2022, and then
to enter a downward trend for three quarters, falling slightly below
the mid-point of the target at the end of the projection horizon. The
prospects for the levelling off and decrease in annual inflation rely
on a milder impact of global supply-side shocks - including in the
context of energy price capping schemes to be implemented until March
2023, as well as on sizeable disinflationary base effects, alongside
the influences stemming from the likely rapid contraction and closing
of the positive output gap in mid-2023, followed by the output gap
widening into negative territory.
World Bank’s estimates show that Romania can record over 5% economic
growth per year until 2030. Government spokesman Dan Cărbunaru has
stated that austerity is not the key word during this period, but
rather moderation. He has also pointed out that Romania has one of the
highest economic growth rates in the European Union.
The number of companies de-registered at national level grew by 8.77%
in the first six months of 2022, compared to the similar period of last
year, having reached 35,420, according to statistics from the National
Trade Register Office (ONRC). The most de-registrations were recorded
in Bucharest – 5,607 (up by 8.81% compared to January-June 2021) and in
Timiș County - 1,605 (up 4.15%), Constanța County - 1,584 (up 14.12%)
and Cluj County - 1,564 (up 10.92%). At the other end of the
classification, the fewest de-registrations were recorded in Ialomița
County - 295 (up by 19.43% year-on-year), Călărași - 303 (up 5.57%) and
Covasna - 317 (up 6.02%).
During the monetary policy meeting on Friday, 5 August, the National
Bank of Romania’s Board of Directors decided to increase the key rate
from 4.75% to 5.50% per year, and to raise the lending (Lombard)
facility rate from 5.75% to 6.50% per year. NBR also raised the deposit
facility rate to 4.50% per year, from 3.75% per year, as of 8 August.
During the same meeting, NBR Board decided to maintain firm control
over money market liquidity and kept the existing levels of minimum
reserve requirement ratios on both RON- and foreign
currency-denominated liabilities of credit institutions.
The transaction through which Romgaz took over ExxonMobil’s stake in
Neptun Deep gas project in the Black Sea at the beginning of August was
financed from the company’s own sources and from a EUR 325 million
syndicated bank loan arranged by Raiffeisen Bank. EUR 200 million of
the financing was ensured by Raiffeisen Bank and EUR 125 million was
provided by Banca Comercială Română. The loan was granted for a
crediting period of five years from the draw date and was entirely used
to pay for the acquisition.
Allianz Group, present on the Romanian market through Allianz-Tiriac
insurance company, ended H1 of 2022 with EUR 81.2 billion total
revenues, up by 7.2% year-on-year, while its operating profit only grew
by 1.2%, to EUR 6.7 billion, according to the information provided by
Allianz representatives on Friday. The group’s solvency ratio was 200%.
The institution reached a net profit attributable to shareholders of
EUR 2.3 billion, down by 52.7% against Q1/2021, following the increase
in provisions in Q1/2022.
The average interest rate on new RON-denominated household deposits
exceeded 4% in June, having reached 4.06%, the highest level of the
past decade, while the average interest rate on RON-denominated retail
loans grew to 7.75%, the record high of the past almost three years.
Higher levels of the average interest rate on new RON-denominated
household deposits had been recorded in 2013, while interest rates on
loans had climbed to higher levels, of 7.9-8%, in the early 2020s.
Moreover, even though the average interest rate for retail deposits in
RON had only been 4% in June, major banks offered 6% or even 7%
interest on over one year maturities in July, compared to three to four
months ago, when they had offered up to 3%.
The Ministry of Entrepreneurship and Tourism has announced that
Romanians in the diaspora who want to return into the country and
invest in a business can obtain up to RON 200,000 financing through the
Start-Up Nation program, which has reached its third edition. The
maximum sum, of RON 200,000, can be obtained if the project creates at
least two full-time jobs. Applicants who undertake to create only one
job will be eligible for maximum RON 100,000. Moreover, the beneficiary
company must bring co-financing representing at least 5% of the
project’s eligible value.
Romanian companies will have more than EUR 2.5 billion available in the
following months for investments in development, technological
upgrading, digitalization or investments in energy efficiency,
according to an analysis conducted by REI, one of the largest groups of
companies, which specializes in attracting non-reimbursable financing
from European funds and state aid for companies in Romania. The same
analysis indicates that the Romanian business environment is going
through its busiest period so far, in terms of non-reimbursable
financing, through European funds, state aid or projects through the
National Recovery and Resilience Plan (PNRR).
Albin Budinsky, CEO of DB Schenker in Romania, has stated that large
companies are already investing significant sums in technology and the
effect of these investments will be seen in the following years, which
is why the logistics market will continue to grow. DB Schenker’s CEO in
Romania has explained that, despite the new cross-docking terminals
already opened in Cluj and Bacău, the company’s next project will be a
new terminal in Arad.
Any person with a higher education degree could become a teacher, even
if they have not attended and completed psychological-pedagogical
training programs or do not have a master’s degree in teaching,
according to an exception stipulated in the draft Pre-University
Education Law. They would have to take a pedagogical knowledge test,
organized by the National Center for Training and Development in the
Teaching Career (CNFDCD), as per the aforementioned document.
Public sector employees could benefit from higher salaries starting
from August 2022, the month that has just begun, amid a new draft
Government Emergency Ordinance (OUG) that includes substantial salary
increases in several institutions. The personnel in public institutions
and authorities nominated in project teams financed from
non-reimbursable European funds is to benefit from up to 50% salary
increases, regardless of the number of projects they are involved in.
European Union countries formally adopted the bloc’s emergency plan to
curb gas use on Friday (5 August), as they attempt to save fuel for a
winter of uncertain Russian supplies, despite Poland and Hungary both
opposing the final law. EU countries last week struck a deal to reduce
their gas demand, to attempt to fill gas storage and prepare for a
possible full Russian cut-off. The agreement asks all EU countries to
voluntarily cut gas use by 15% this winter and could make the cuts
binding in a supply emergency, albeit with numerous opt-outs for some
countries and industries.
The Ministry of Health has announced that 3,518 new cases of persons
infected with SARS-CoV-2 were recorded on 6-7 August, 2,923 fewer than
on the previous day. 613 of the new cases reported for the
above-mentioned period were re-infected patients who tested positive
more than 90 days after their first infection. Eight deaths were
reported during the same interval, with 184 more hospitalized people
admitted than the previous day.
Tudorel Andrei, the President of the National Institute of Statistics
(INS), has presented some data from the general population census. He
has indicated that about 19 million people live in Romania. In the
previous census, conducted in 2011, Romania’s stable population was
20.12 million, according to INS. He has added that 95% of the country’s
estimated population has filled in the census questionnaires and has
pointed out that 46% of the population lives in rural areas.