News

Daily Newsletter - 10 November 2022

Summary

Macroeconomic (3)
Financial (3)
Investment (3)
Legislative (4)
European News (1)
Social (2)
Macroeconomic 
Nearly half of impact companies in Romania are restructured or in imminent insolvency
70% of the national turnover is generated by 32,027 impact companies (with total assets of more than EUR 1 million). 42% of them are currently restructured companies or companies in imminent insolvency, according to the study on impact companies conducted by CITR, a company operating on the insolvency and restructuring market. The number of companies in imminent insolvency decreased by 10% in 2021 year-on-year, but increased by 7% compared to the level recorded 2019, upon the onset of the pandemic. Nearly half of the total turnover of companies in imminent insolvency is generated by companies with over EUR 50 million assets.
Romania’s exports grew by 26.2% in the first nine months of 2022
Romania’s exports grew by 26.2% in the first nine months of 2022, to EUR 68.8 billion, while imports were up 31.7%, to EUR 93.867 billion, according to data published by the National Institute of Statistics (INS) on Wednesday. The value of intra-EU27 trade in goods during the period 1 January-30 September 2022 was EUR 49.839 billion in exports and EUR 66.084 billion in imports, accounting for 72.4% of total exports and 70.4% of total imports.
Trade deficit exceeded EUR 25 billion in the first nine months of 2022
Trade deficit (FOB/CIF) grew by EUR 8.313 billion in the first nine months of 2022, to EUR 25.063 billion, as exports increased by 26.2% and imports were up 31.7%, according to data published by the National Institute of Statistics (INS) on Wednesday. According to the INS, FOB exports totaled EUR 68.804 billion and CIF imports exceeded EUR 93.867 billion during the period 1 January - 30 September 2022.
Financial 
Raiffeisen Bank has been selected as the best Private Banking Bank in Romania
Raiffeisen Bank Romania, through its dedicated service, Friedrich Wilhelm Raiffeisen (FWR), has won the award for the best Private Banking Bank in Romania, awarded by Professional Wealth Management (PWM-The Banker) magazine, part of the British Financial Times Group, for the third consecutive year. Friedrich Wilhelm Raiffeisen was launched in 2012, and in its 10 years of activity has increased its clients portfolio to around 2,200, being one of the industry leaders in Romania in terms of managed volumes and the adoption of the latest trends on global capital markets.
UniCredit marks Black Friday, for the fifth consecutive year, with special offers for clients
UniCredit marks Black Friday, for the fifth consecutive year, with special offers for individual and SME clients with an annual turnover of maximum EUR 1 million, which will be available online exclusively on Friday, 11 November, within the limit of the available offers. Specifically, new individual clients can open RON-, euro- and USD-denominated current accounts at UniCredit Bank, with zero maintenance fee and zero costs for the types of operations included in the offer, for the entire period of the contract, or they can access UniCredit Consumer Financing Personal Loan with a fixed interest rate of 6.99% per year.
BRD Groupe Société Générale has launched the Euromentor division
BRD Groupe Société Générale has launched the Euromentor division, a structure to support entrepreneurs in accessing and implementing investment projects with non-reimbursable funds. The team is formed of nine experts in funds accessing, who will act as mediators in inter-institutional relations and will help with the distribution of European or state funds, in line with clients’ business plans, as well as with business co-financing if needed.
Investment 
Government approved new investments for the ports of Constanța and Galați
During the meeting on Wednesday, Government approved new investments for the ports of Constanța and Galați, which have become strategic hubs for transports from Ukraine following the Russian invasion. Investments for Constanța port will exceed RON 5 billion for the implementation of public services and the development of the railway component, consisting of about 250 kilometers of rail line. Investments at the port of Galați will ensure the development of the multimodal transport component.
Almost all airports in Romania are carrying out or planning expansion and modernization works
Almost all airports in Romania are carrying out or are soon to start expansion and modernization works. The total value of investments in local airports exceeds EUR 600 million, including the construction of Braşov airport, which is expected to operate flights starting from the second half of 2023. Investments in airports are meant to prepare local terminals for the increase in traffic expected in the coming years, but also to help avoid losing money allocated to airports through the Large Infrastructure Operational Program.
TEILOR luxury jewelry stores chain keeps expanding in Poland
TEILOR, the luxury jewelry stores chain whose bonds have been listed on Bucharest Stock Exchange, keeps expanding in Poland. It has inaugurated a new store in the city of Wroclaw and has thus reached a portfolio of 13 units outside Romania. Currently, the TEILOR network in Poland, the main foreign market for the company, comprises six stores, three of which are in Warsaw and two in Poznan. The new TEILOR store is located in the Wroclavia Shopping Center in Wroclaw, has an area of approximately 87 square meters and has four employees.
Legislative 
Romania participates with EUR 3.4 million in the North Atlantic Alliance Innovation Fund
According to Government spokesman Dan Cărbunaru on Wednesday, 9 November, the Executive approved an Emergency Ordinance targeting measures for Romania’s participation in the North Atlantic Alliance Innovation Fund. The value of Romania’s participation in setting up this investment fund is EUR 3.4 million, which will be included in the annual budget of the Ministry of Research, Innovation and Digitalization for this purpose, he has explained.
Parliament rejected automatic cancellation of fines imposed by authorities in state of emergency
Parliament, through a final vote in the Chamber of Deputies, rejected the draft law that automatically cancelled fines imposed by authorities during the state of emergency period, without the need to go to court. The draft law had been initiated by Călin Popescu-Tăriceanu (ALDE), Victor Ponta (Pro Romania) and Cseke Attila (UDMR), and had been adopted through a vote in the Senate in full pandemic, i.e. in June 2020, when the Government was only formed of the National Liberal Party (PNL).
Government adopted OUG on prices of agreements for rail coal transport for energy companies
Government spokesman Dan Cărbunaru has announced that on Wednesday, 9 November, the Government adopted an Emergency Ordinance (OUG) on the adjustment of prices of framework agreements and of sectoral contracts for rail coal transport services for energy companies. He has added that this measure will help avoid blockages in ensuring rail transport of coal to energy companies that supply thermal power to end-consumers.
USR MPs submitted draft law regarding responsibility in energy sector to Parliament
Save Romania Union (USR) MPs Cristina Prună and Radu Miruță submitted a draft law regarding responsibility in the energy sector to Parliament on Wednesday, 9 November. The draft law bans the removal from the Romanian energy system of a coal or lignite production unit before it is replaced by another source that can produce at least the same amount of electricity. USR indicates, in a press release, that the draft law came as the Social Democratic Party (PSD) and the National Liberal Party (PNL) had voted on Tuesday to close coal mines in Romania.
European News 
European Commission proposes more individual debt rules for EU countries
The European Commission presented its proposals to reform the debt and spending rules for national governments on Wednesday (9 November) as individual plans for every EU country, negotiated between national governments and the Commission. The EU fiscal rules, which dictate how much leeway national governments have in public spending, have come under fire in recent years. While some critics describe them as ineffective due to a lack of enforcement, others find that they restrict member states too much, especially regarding investments in the green and digital transition.
Social 
There are 1,188,000 people on the verge of extreme poverty in Romania
Minister for Investments and European Projects Marcel Boloş has stated that there are 1,188,000 people on the verge of extreme poverty in Romania and who benefit from the food packages purchased with European funds. Prime Minister Nicolae Ciucă announced that the fifth phase of the Operational Program for Underprivileged People’s Assistance, targeting Romanians affected by extreme poverty, would start on Wednesday, 9 November.
Regulation of program to increase birth rate in Romania was put up for public consultation
Family Minister Gabriela Firea announced on Wednesday, 9 November, that the Regulation of the program aimed at increasing birth rate in Romania had been put up for public consultation. The program would allow infertile couples or single women aged 20-45 to receive a RON 15,000 aid. Only couples and women who are struggling with infertility, who are resident in Romania and who will carry out procedures to obtain a pregnancy in a public hospital or an accredited private clinic in Romania can apply for this social program.