Daily Newsletter - 10 November 2021


FIC (1)
Macroeconomic (4)
Financial (3)
Investment (3)
Legislative (1)
European News (1)
Social (2)
Moody’s and Standard & Poor’s have positive prospects on Romania’s economy and macroeconomy
In April, S&P improved Romania’s rating outlook from negative to stable. Moody’s rating agency also reaffirmed the Baa3/P-3 ratings on the Romanian government’s long- and short-term local and foreign-currency debt, and improved the outlook from negative to stable. Investors have also confirmed their confidence in the local business environment, as the Foreign Investors Council (FIC) published positive Business Sentiment Index (BSI) results for September 2021. FIC notes that 80% of the respondents believe "businesses continue to expect growth for their revenues and for their activity on the domestic market."
Romania could record economic growth of about USD 26 billion by 2040
Romania could record economic growth of about USD 26 billion by 2040, which means 9% GDP growth, if it invested heavily in the healthcare sector, which would lead to changes in the labor market, increased productivity and fewer health problems at population level, according to a report drawn up by the McKinsey Global Institute. According to analysts, the pressure that health problems put on the Romanian medical system could decrease by up to 36% within the next 20 years under these circumstances.
Romania’s trade deficit grew by nearly EUR 3.7 billion
Romania’s trade balance deficit (FOB/CIF) amounted to EUR 16.740 billion in the first nine months of the year, up by EUR 3.682 billion year-on-year, according to data published by the National Institute of Statistics (INS) yesterday. According to the INS, FOB exports totaled EUR 6.350 billion, and CIF imports stood at EUR 8.481 billion in September 2021, thus resulting in a EUR 2.131 billion deficit. Exports grew by 4.6% and imports were up 11.4% in September 2021 compared to the similar month of 2020.
The current surge in consumer prices would subside in 2022
European Union finance ministers agreed on Monday, 8 November, that the current surge in consumer prices would subside in 2022 and that high public debt created by the pandemic had to be reduced, but in a way that would not hurt economic growth. Inflation rose 4.1% year-on-year last month in the 19 countries sharing the euro, up from 3.4% in September and the ministers are starting to worry that the rise might fuel stronger wage growth, creating an inflationary spiral.
The expectations index for euro area’s economic activity recorded the first monthly advance
The expectations component of the overall index for euro area’s economic activity recorded the first monthly advance in November 2021, after five consecutive declines, according to the latest report from Sentix GmbH. The increase by 5.3 points compared to the previous month, to 13.3 points, contributed decisively to the unexpected rise in the overall index of the economic situation, to 18.3 points, from 16.9 points in the previous month.
NBR has increased the key rate to 1.75% per year
On Tuesday, 9 November, the National Bank of Romania’s Board of Directors decided to increase the monetary policy rate to 1.7% per year, from 1.50% per year, as of 10 November 2021 and to maintain firm control over money market liquidity. Moreover, the central bank decided to extend the symmetric corridor of interest rates on standing facilities around the policy rate to ±0.75 percentage points from ±0.50 percentage points. Thus, starting 10 November 2021, the lending (Lombard) facility rate will be raised to 2.50% per year from 2% per year, while the deposit facility rate will be kept at 1% per year.
The Casco insurance from Generali can be concluded online starting from November
The Casco insurance from Generali Romania can be accessed by car owners, individuals and legal persons, from the company’s website directly, without the need for a Generali representative’s assistance, according to the information transmitted by the insurer. In order to conclude the policy, clients have to go through some simple steps which consist in obtaining an offer, the vehicle’s identification and evaluation based on a photo, and the issue of the contract. The smartphone is the recommended device, but the policy can also be concluded using one’s personal computer or tablet.
Ministry of Finance attracted RON 60 million from banks on Tuesday
The Ministry of Finance attracted RON 60 million from banks on Tuesday, in addition to Monday’s auction, when it had borrowed RON 573 million, at an interest rate of 4.82% per year, through a benchmark government bonds issue, with 75-month residual maturity, according to data published by the National Bank of Romania (NBR). The nominal value of the additional issue was RON 60 million, and banks submitted offers worth RON 140 million. The Ministry of Finance (MoF) plans to borrow RON 4.4 billion from commercial banks in November 2021, of which RON 400 million through a discounted bills issue and RON 4 billion through nine government bond issues.
Restoration works on "Cantacuzino" Palace have started
Restoration works on the "Cantacuzino" Palace, home to "George Enescu" Museum, actually started on 5 November, after the Ministry of Culture had announced last month that they were scheduled to begin on 25 October. The investment required for the "Cantacuzino" Palace will be made over a period of 24 calendar months from the date when the Order to start works has been issued and the site has been handed over and has a net value of EUR 5.5 million, according to contractual terms.
A new Double Tree by Hilton hotel will be opened in Brasov in 2023
A new hotel part of the Double Tree by Hilton hotel chain will be opened in Brasov in 2023, with a capacity of 150 rooms. The investment amounts to EUR 21 million, Mircea Drăghici, Managing Director at EST Hospitality Consulting, revealed for the first time, during ZF editorial project "Romania’s Business Poles", carried out in partnership with Bucharest Real Estate Club (BREC). EST Hospitality Consulting is a company providing consultancy, market research services and feasibility studies for the hotel industry.
Investments in the modernization of Vivo! shopping center in Baia Mare amounted to EUR 7 million
Geanina-Mihaela Ungureanu, a senior Leasing & Asset Retail Manager at Immofinanz, has stated that the value of investments in the modernization of Vivo! shopping center in Cluj amounted to EUR 22 million, and that the modernization of Vivo! center in Baia Mare involved about EUR 7 million costs. Geanina Ungureanu has pointed out that investments will also be made in retail parks.
President Klaus Iohannis has promulgated a new law
On Tuesday, President Klaus Iohannis promulgated the law forbidding public institutions and central public administration’s specialized organisms to request copies of authorizations or other documents issued by state entities from individuals or legal entities, in order to resolve requests for the provision of public services. The law completes the Government Emergency Ordinance no. 41/2016 establishing certain simplification measures at the level of the central public administration and amending and completing certain normative acts.
European News 
EU finance ministers got together in Brussels on Monday, 8 November
EU finance ministers got together in Brussels on Monday, 8 November, to kick off a series of meetings that would be continued by a discussion between all EU finance ministers on Tuesday, 9 November and completed by another meeting to discuss the EU’s budget for 2022 on Friday, 12 November. Ministers discussed the economic outlook, high energy prices, the digital Euro, and risks in the banking sector. Moreover, they had the first exchange of views on reviewing the Commission’s recently launched economic governance framework.
People who got vaccinated with Johnson&Johnson serum can get an appointment for a booster shot
The head of the National Committee for the Coordination of Anti-COVID-19 Vaccination Activities (CNCAV), Valeriu Gheorghiţă has stated that people who got vaccinated with the Johnson&Johnson vaccine can get an appointment for a booster shot on the online vaccination platform and can opt for immunization with the Pfizer, Moderna or Johnson&Johnson serums, provided at least six months have passed since the first dose. He has added that the Special Telecommunications Service (STS) has optimized the platform with a view to the appointments for the booster shot.
Ministry of Health is preparing draft Government decision on the immunization strategy
Secretary of State Andrei Baciu announced on Tuesday that the Ministry of Health was preparing a draft Government decision on the anti-COVID-19 immunization strategy for the period 2022 - 2023, aimed at reaching a vaccination rate of 90% of the eligible general population aged over 12. He stated, during a press conference that the anti-COVID-19 vaccination had been carried out in 2021 based on a strategy defined by a group of experts in 2020 and subsequently approved through a Government decision.