From an investment
perspective, FIC noticed that companies' confidence in business
opportunities is maintained, because for the next 12 months more than
53% of companies have investment plans. These results remain at high
levels for BSI, marking a new peak. The bad news remains constant when
looking at infrastructure, transparency and policy coherence, reducing
bureaucracy and regulatory burden. Since 2016 these are, perceived as
very weak and uncompetitive by most respondents. At the same time, FIC
members consider that Romania has a very good opportunity to use the
funding available for reform and resilience programs and find the most
adequate solutions to address these issues by implementing PNRR.
Although the political situation in the last month has not responded to
the need for predictability of the business environment, the approval
of PNRR is an important moment for this country project that we are
ready to support in the implementation phase.
The net foreign assets of banks in Romania, i.e. the difference between
foreign assets and foreign liabilities, had a surplus of about EUR 6
billion in July 2021, a surplus which represents exported capital,
Cristian Popa, a member of the National Bank of Romania’s Board of
Directors, stated during an event organized by the Asset Managers
Association (AAF). He said that Romania financed other states’ budget
deficits inclusively through this surplus. Basically, he explained,
commercial banks in Romania are currently lending money to the external
sector. As a comparison, in July 2008, before the onset of that year’s
financial crisis, net foreign assets had had a EUR 16 billion (over RON
80 billion) deficit.
Foreign direct investments totaled EUR 3 billion in 2020, after
enterprisers’ equity amounted to EUR 3.9 billion, but the ratio between
debts and receivables was negative, having generated a minus of EUR 994
million, according to data published on Thursday, 30 September, by the
National Bank of Romania (NBR), in collaboration with the National
Institute of Statistics (INS). Equity thus stood at EUR 983 million,
while reinvested profit amounted to EUR 3.01 billion. Moreover, debt
transactions with foreign direct investors and non-resident fellow
companies (debt less claims) were worth –EUR 994 million, having had a
negative impact on the total level of foreign direct investments.
Romanians’ appetite for consumer loans remains high, the volume of new
such lending products having reached nearly RON 2.63 billion in August
2021, the second highest monthly level of the past 14 years and up by
49.4% against the level recorded in August 2020. The previous monthly
record of retail lending, of nearly RON 2.9 billion, had been reached
in July 2021. The rise in lending comes despite an increase in the
average interest rate to 9.5% in August, from 9.2% in July. Moreover,
the volume of new RON-denominated retail loans stood at RON 18.9
billion at the end of the first eight months in 2021, 50.2% above the
level recorded during the same interval of 2020, and the cumulated
volume of new RON and euro-denominated retail loans got close to RON 19
billion, up by RON 6.2 billion (48.6%) against the level from January -
August 2020.
Hungarian banking group OTP Bank intends to take over Ipoteka Bank
(Mortgage Bank), a state-owned bank from Uzbekistan, according to a
memorandum signed by OTP and the government from Tashkent on Wednesday,
29 September. The Uzbek authorities had previously announced their
intention to sell a 75% stake at Ipoteka Bank. However, on Wednesday,
after the agreement was signed during a conference in Tashkent, the
parties did not provide any details on the size of the participation or
on the price of the transaction.
eMAG continues to invest in the professional development of managers in
the organization. Through the Grow Talent program, which the company is
investing EUR 300,000 in, 85 eMAG leaders and future leaders part of
the company have access to three business programs organized by Harvard
Business School and London School of Economics, which will run until
the end of 2021. The 85 managers to have joined the program will
develop their strategic thinking, commercial, financial and operational
strategy skills by attending three intensive courses.
Notino, one of the biggest online perfumes and cosmetics retailers, has
made new investments in the development of its logistics capabilities,
according to a press release. The company is developing its 7,000
square meter logistics center in Bucharest, the investment amounting to
about EUR 3 million. In 2020, Notino decided to open a distribution
center in Romania, in order to offer customers the highest quality
services and faster delivery. The decision was further accelerated by
the Covid-19 pandemic, when transport and movement in the European
Union were restricted, having thus led to an unprecedented situation.
Liberal (PNL) Senator Nicoleta Pauliuc, the chair of the Senate’s
Committee on Defense, Public Order and National Security, has submitted
a legislative initiative according to which all economic operators
providing toilet discharge services have the obligation to be equipped
with GPS systems. The initiative is mainly aimed at discouraging the
practice of illegally discharging septic trucks’ contents into rivers
or in unauthorized areas. The legislative initiative proposes
completing Government Emergency Ordinance no. 195/2005.
On Thursday, 30 September, President Klaus Iohannis promulgated two
laws regarding access to refundable and non-refundable external funds
from the European Union within the Recovery and Resilience Mechanism,
namely the Law approving Government Emergency Ordinance (OUG) no.
155/2020 and the Law approving Government Emergency Ordinance (OUG) no.
24/2021. According to OUG 155/2020, the National Recovery and
Resilience Plan (PNRR) is Romania’s strategic document, which
substantiates reform priorities and investment areas at national level,
for the establishment of the Recovery and Resilience Mechanism. OUG
24/2021 completes the first ordinance by adding procedures regarding
negotiation, but also implementation of funds within the Recovery and
Resilience Mechanism.
As the 14-day COVID-19 incidence rate in Bucharest went over the six
per 1,000 persons threshold, the government decided to change some of
the rules. Over the past weeks, COVID-19 cases have increased rapidly
in the country, with daily cases reaching 11,000 on Tuesday, 28
September. Health authorities have already predicted that Romania could
see more than 20,000 COVID-19 cases a day in October. At an incidence
rate of over six per 1,000, schools should be closed according to rules
set just a month ago. But now, the government is considering abandoning
school closures regardless of the number of infections. Schools could
still face closures in cases where a certain number of students and
teaching staff test positive.
Minister of Labor and Social Protection Raluca Turcan stated on
Thursday, 30 September, that only 1.3% of the elderly in Romania
benefitted from social services, which meant that many seniors were not
registered and did not have access to the aid they could obtain from
the state. The minister pointed out that she had already started
consultations for the amendment of the Social Assistance Law. There are
3.8 million elderly people aged over 65 in Romania, representing 17.3%
of the country’s population.
Secretary of State in the Ministry of Health Andrei Baciu announced on
Thursday, 30 September, that the network of pharmacies where free rapid
antigen tests can be performed to detect SARS-VOC2 infection had been
expanded. He stated that there were currently 106 such pharmacies in 19
counties in the country and new units, part of the pharmaceutical
networks in Romania, would be added to the list in the following
period.
The National Committee for the Coordination of Anti-COVID-19
Vaccination Activities (CNCAV) announced on Thursday, 30 September,
that immunization with another type of serum based on RNA Messenger was
allowed for all persons who had received the first dose of Vaxzevria
(AstraZeneca) and who had decided to postpone the booster shot for more
than three months. In the case of people who got vaccinated with the
first dose of Vaxzevria (AstraZeneca) less than three months ago, the
decision to change the type of serum upon the second dose will be made
following a medical recommendation, according to the contraindications
and precautions included in the Summary of Product Characteristics
(SPC).