Romanian economy is expected to grow by 2.6% this year, according to
the World Bank’s Global Economic Prospects report published on Tuesday,
10 January. The estimates are lower than those included in another
report in June, when the international financial institution had
indicated Romania’s GDP would grow by 3.7% in 2023. Moreover, the World
Bank has forecast that Romania’s economy will grow by 4.2% in 2024,
compared to the 3.9% advance mentioned in June’s projections.
Economist Radu Crăciun has stated that the slowdown of inflation also
implies a slowdown in consumption, adding that Romanians cannot consume
at the level they did a year ago and see a drop in inflation at the
same time. He has also indicated that the increase in interest rates is
also in favor of one category of Romanians, namely those who manage to
save, manage to put their money in banks and hope that these savings
will at least preserve their real value, if not even generate a
positive return in real terms.
The annual inflation rate will probably decline in Q1/2023, in line
with the latest medium-term forecast, from November 2022, but will fall
at a significantly faster pace afterwards, to reach one-digit levels in
Q3/2023, according to a press release issued by the National Bank of
Romania. Moreover, the balance of supply-side risks to the new
inflation outlook is in relative equilibrium, given the recent
developments in key energy and agri-food commodity prices, as well as
those in their major determinants.
The National Bank of Romania (NBR)’s Board of Directors decided on
Tuesday, during the first monetary policy meeting in 2023, to increase
the key rate to 7% per year, from 6.75% per year as of 11 January 2023.
Moreover, it raised the Lending (Lombard) facility rate to 8.00% per
year from 7.75% per year and the deposit facility rate to 6.00% per
year from 5.75% per year, also starting from 11 January 2023.
Furthermore, the existing levels of minimum reserve requirement ratios
on both RON- and foreign currency-denominated liabilities of credit
institutions were maintained, according to the press release issued by
NBR.
Ufuk Tandogan, the Turkish executive to have led Garanti Bank Romania
for 9 years, from 2012 to 2021, has been appointed chairman of Rădăcini
Financial Services’ Board of Directors, a company he also holds a stake
in. Rădăcini group had been founded by Iranian businessman Ali Madadi,
and his son Darius Madadi took over the company’s management in 2021.
The General Assembly of the Romanian Association of Banks (ARB), which
met on Tuesday, 10 January 2023, voted on the new structure of the
Board of Directors following the filling of a vacant seat. ARB’s Board
of Directors is led by Bogdan Neacșu, Chairman of the Board of
Directors, Gabriela Nistor, Vice-Chairman and members Mihaela Bitu, Ion
Stan, Cristian Agalopol and Cornel Stănescu, whom Mircea Busuioceanu
joined as a member yesterday.
Technology giant Microsoft is in talks to invest about USD 10 billion
in OpenAI, the owner of the popular chatbot ChatGPT, according to a
Semafor report published on Tuesday, Business Insider reports. The
investment would value OpenAI at about USD 29 billion, Semafor’s Liz
Hoffman and Reed Albergotti reported. The company is currently valued
at about USD 20 billion. The deal was expected to be concluded by the
end of 2022, but it is unclear whether it has been finalized yet,
Semafor reported, citing some documents sent to potential investors.
Vestra is consolidating its portfolio of assets by taking over CHRISDEN
ARIMEX S.R.L, following a RON 1 million investment, according to a
press release. The cited source indicates that Chrisden’s acquisition
will allow Vestra to diversify and complete its portfolio of solutions
and equipment, while increasing the addressability of heating companies
in Romania. The new investment targets the equipment and utilities
department, which is the company’s main area of activity.
Delgaz Grid, German group E.ON’s distribution company, is carrying out
a RON 79 million investment for the network’s modernization and for the
SMART implementation with European funds in Neamt County. The project
targets the installation of more than 11,000 smart meters for household
and small non-household consumers, as well as works on the low-voltage
distribution network, on 280 kilometers. Delgaz Grid’s contribution is
of over RON 35.5 million (VAT included).
The new education law proposed by Minister Ligia Deca must pass the
Parliament’s vote by 15 March, the leaders of the PSD-PNL-UDMR ruling
coalition decided on Tuesday. During the coalition meeting on 10
January 2023, UDMR leader Kelemen Hunor proposed that the education law
should be adopted by the government assuming responsibility, as it had
happened with the Funeriu law in 2011. However, the coalition leaders
eventually agreed that adopting the law by assuming responsibility
involved risks, such as the filing of a no-confidence motion, plus the
accusation of lack of debate. Therefore, passing the normative act
through Parliament is preferable.
The administrator or liquidator of a company undergoing insolvency,
bankruptcy or liquidation proceedings will be obliged to issue a
document to the company’s employees attesting the activity carried out
by the latter and to terminate and transmit to the Employees General
Register the termination of their individual employment contracts
within maximum 60 calendar days, according to a draft law promulgated
by President Klaus Iohannis on Tuesday, 10 January. The promulgated
provisions complete a draft law adopted by Parliament in April 2021.
On Tuesday, 10 January, President Klaus Iohannis promulgated the law
establishing the "Day of Victory of the 1848 Revolution and Romanian
Democracy" and declaring some cities as martyr-cities of the 1848
Revolution. Central and local public administration authorities, as
well as non-governmental organizations may organize events and public
actions to celebrate this day.
President Klaus Iohannis has promulgated the law completing Law
95/2006. This law stipulates that the period during which individual
medical practices provided medical or medical-dental services
constitutes professional experience as a doctor or dentist and is
assimilated to accumulated service, subject to certain conditions.
The European Union aims to finish negotiations by July on laws to
deliver its 2030 climate change target, although a contentious overhaul
of fossil fuel taxes will likely take longer, Sweden’s ambassadors to
the bloc said on Monday (9 January). The 27-country EU is in the final
stretch of negotiating roughly a dozen laws to fight global warming,
and last year struck deals on most, including a 2035 ban on sales of
new fossil fuel cars and a major overhaul of its carbon market.
New electronic identity cards are expected to be issued at national
level by the end of this year, and the cost of RON 67, currently
charged for their release, within the pilot-project in Cluj, will be
borne by the state, considering that Romania has allocated EUR 200
million in the National Recovery and Resilience Plan (PNRR) for this
project, according to a draft normative act put up for public
consultation by the Home Affairs Ministry. Identity cards will no
longer be issued in the current format starting from 1 January 2024.
According to the latest Reveal Marketing Research survey, 2022 was the
most satisfying year for most Romanians (54%) compared to 2020 (24%)
and 2021 (22%) - years heavily marked by pandemic-related restrictions,
a press release indicates. According to the cited source, as Romanians
regained more freedoms, they became more relaxed and optimistic in
2022, an attitude that reflected in their feelings and resolutions for
the new year. 48% of respondents thus said they were optimistic about
2023, while only 15% are pessimistic.