News

Daily Newsletter - 1 September 2021

Summary

Macroeconomic (2)
Financial (2)
Investment (3)
Legislative (2)
European News (1)
Social (2)
Macroeconomic 
Annual inflation rate in the euro area reached the record high of the past ten years in August
Annual inflation rate in the euro area reached the record high of the past ten years in August, and analysts expect the trend to continue, which is a reason for concern for the European Central Bank (ECB) and investors. According to a preliminary estimate by the European Union’s Statistical Office (Eurostat), the euro area’s annual inflation rate grew to 3% in August, from 2.2% in July. Moreover, the National Bank of Romania has revised upwards its inflation forecast for the end of this year, to 5.6%, according to a presentation made by NBR Governor Mugur Isărescu, compared to 4.1%, as previously estimated by the central bank.
Finance Ministry will launch three new government securities issues within the Tezaur Program
Starting from Wednesday, 1 September 2021, the Ministry of Finance will launch three new government securities issues within the Tezaur Program, with 1-, 3- and 5-year maturities and interest rates of 3.25%, 3.75% and 4.15%. The government securities have a nominal value of RON 1 and are in dematerialized form. They can be purchased from the State Treasury units during the period 1-28 September 2021. Moreover, the government bonds can also be purchased through the Romanian National Post Company’s offices between 1 and 27 September 2021 for urban areas and between 1 and 24 September 2021 for the rural environment.
Financial 
SIF1 sold the 10% stake held at BT Asset Management to Banca Transilvania
SIF Banat-Crişana (SIF1) sold the 10% stake held at BT Asset Management, one of the largest mutual fund managers in Romania, to Banca Transilvania in Q2 of 2021. As a result, the bank from Cluj increased its holding in BT AM, which manages RON 4.5 billion assets, from 89.9% to 99.99%.
Omniasig ended H1/2021 with a RON 730 million volume of gross underwritten premiums
Omniasig, the largest local company of the Austrian group Vienna Insurance Group (VIG), ended H1 of 2021 with a RON 730 million volume of gross underwritten premiums, up by over 10% compared to the similar period last year, according to the information provided by the company’s representatives. Moreover, the company recorded a RON 30 million gross profit in the first six months of 2021, down by 14.3% year-on-year.
Investment 
Holde Agri Invest plans to invest in two start-ups activating on the agrotech segment
Iulian Cîrciumaru, chairman of Holde Agri Invest’s Board of Directors, has stated that the financing ecosystem for innovative projects in Romania is growing and Holde Agri Invest plans to invest in two start-ups activating on the agrotech segment this year. He estimates that investments in the two start-ups will amount to EUR 150,000-200,000 and Holde Agri Invest is already a client for the product developed by one of these two projects.
Total value of real estate investments reached almost EUR 290 million in H1/2021
The total value of real estate investments in Romania reached almost EUR 290 million in H1/2021, down by about 29% compared to the EUR 409 million level recorded in the first half of 2020. Transactions made on the office segment accounted for about 66% of the volume, as indicated by Colliers in its market report on the evolution of the real estate market in H1/2021. Despite the slowdown, Colliers consultants believe that market fundamentals remain strong, with a healthy level of transactions and confidence from banks to increase lending in economy in 2021, which encourages potential new investors or those already present on the market to prospect Romania.
Galati County Council is accelerating investments in healthcare infrastructure
The city of Galaţi continues to invest in the modernization of hospital departments, and County Council President Costel Fotea has recently announced the modernizations to be made at the TB Hospital and in the cardiology department of Galaţi County Hospital. On the other hand, the Mayor of Galaţi, Ionuţ Puchenau has also announced a project with European funds at the "Buna Vestire" Maternity Hospital. So far, Galaţi County Council has submitted four projects for financing on the Large Infrastructure Operational Program, the axis regarding the consolidation of the Covid-19 health crisis management capacity, worth nearly RON 100 million altogether. Furthermore, the County Council has an ongoing investment in the new interventional cardiology department of Galati County Hospital.
Legislative 
Government has approved prosecutors and Police’s direct access to ANAF’s bank accounts register
The government approved, during the meeting on Monday, 30 August, an emergency ordinance considered essential for investigators’ work. They will have access to the money storage place, but not to the circulation of sums. A prosecutor has stated that this legislative change was long awaited and that it helps a lot in the investigation work, especially in economic crimes investigation. The police, prosecutors, and specialists of the Anti-Fraud Department (DLAF) and the National Agency for the Management of Seized Assets (ANABI) will thus have access to the National Agency for Fiscal Administration (ANAF)’s centralized bank accounts register, containing financial information, financial analyses and information on bank accounts.
The final form of the vulnerable consumer law will be decided on Monday, September 6
PNL President Ludovic Orban has stated that the ruling coalition will hold the decisive discussion on the final form of the vulnerable consumer law on Monday, 6 September. He has also indicated that previous talks had aimed at bringing this law into force on 1 October.
European News 
70% of EU adult population is fully vaccinated
More than 256 million adults in the EU are now fully vaccinated against COVID-19 as the rate among the adult population reached 70% on Tuesday, 31 August. Stella Kyriakides, the Commissioner for Health and Food Safety, said she was very pleased that the goal had been reached. She added that this was a collective achievement of the EU and its member states.
Social 
Committee on Budget and Finance issued positive opinions on two legislative initiatives of USR PLUS
The Committee on Budget and Finance has issued positive opinions on two legislative initiatives of USR PLUS aimed at simplifying the submission of the file for children’s state allowance and at allowing students aged over 18 from special schools to continue to benefit from the allowance until their graduation. In the case of the first legislative initiative, parents will no longer have to submit the same documents to two different counters, as the declaration of birth and the establishment of the right to benefit from state allowance will be simultaneously registered. The second initiative is an important help for children enrolled in the special education system, who suffer from serious health problems due to which they go to school much later than children who do not have such problems.
Vaccination centers can be organized in schools in Romania
Health Minister Ioana Mihăilă stated on Monday, 30 August, that vaccination centers can be organized in schools that had medical units, doctors and appropriate equipment, while the other schools would be able to request a mobile caravan, by mobilizing a team from anti-Covid-19 vaccination centers. The Minister also called on parents to ask schools for information on teachers’ immunization status.