FIC launched the 2022
edition of Va Urma (https://vaurma.ro) with the participation of the
Prime Minister of Romania, Mr. Nicolae Ciuca, together with members of
the Government and Parliament, international institutions, and economic
leaders. The "Va Urma" project represents an economic development model
with a vision for the next 20 years, updated to take account of the
latest events at global level. The event was a first step in setting
country directions agreed and supported by the authorities,
representative international institutions, and the business
environment. The participants agreed on ten long-term measures and
several quick wins for boosting the future economy based on
investments, energy mix, digitalization, human capital and institional
The European Commission has approved a EUR 4 billion (about RON 19.7
billion) Romanian scheme to support companies across sectors in the
context of Russia’s invasion of Ukraine, according to a press release.
In light of the high degree of economic uncertainty caused by the
current geopolitical situation, the scheme is aimed at ensuring that
sufficient liquidity remains available to the affected companies by
enabling banks to continue lending to the real economy.
Net investments in the national economy totalled RON 57.25 billion in
the first six months of 2022, down by 0.8% compared to the similar
period of 2021, according to data published by the National Institute
of Statistics (INS) on Friday, 9 September 2022. The decline was
recorded in the case of structural elements other expenditure (-15.4%)
and machinery (including means of transport) - minus 4.6% in H1/2022.
On the other hand, net investments in new construction works grew by
3.3%. According to the cited source, net investments in the national
economy amounted to RON 33.019 billion in Q2/2022, down by 1.4%
The trade balance deficit (FOB/CIF) grew by nearly EUR 5.9 billion in
the first seven months of 2022, to EUR 18.77 billion, as exports rose
by 23.9% and imports were up 29%, according to data from the National
Institute of Statistics (INS). FOB exports totaled EUR 52.67 billion
and CIF imports stood at EUR 71.44 billion during the period
January-July 2022. The value of intra-EU27 trade in goods was EUR 38.16
billion at exports and EUR 50.36 billion at imports, accounting for
72.4% of total exports and 70.5% of total imports.
Romanians contracted a record volume of new RON-denominated mortgage
loans in July 2022, of RON 2.4 billion, the record high of the past 15
years, while interest rates are following an upward trend, according to
the National Bank of Romania (NBR)’s statistics. The volume of new
RON-denominated mortgage loans in July was about RON 400 million (about
20%) higher than the one recorded in June 2022 and higher than the
approximately RON 2 billion level reported for July 2021.
Adina Călin, a Product Manager at CEC Bank, the financial institution
with more than 1,000 branches and units at national level, has stated
that the level of interest rates on products in the bank’s portfolio
depends on a number of indicators, which take into account
macroeconomic developments and trends transmitted from the central
bank, as well as the movements of competitors on the market, and the
proper management of the bank’s own sources. On the other hand, the
banking system has been reacting to inflation which has exceeded 15%.
There have been several interest rate increases throughout this year,
and CEC Bank will most certainly adjust interest rates on deposits,
Mrs. Călin has also indicated.
Banks continue to increase interest rates offered on term deposits,
which, in some cases, even exceed 5%, including for one-month deposits,
while for longer maturities, they exceed 7%, and even reach 8% for
online deposits, according to offers published by credit institutions.
However, even though interest rates on deposits are rising, they
continue to be less than half the 15% inflation rate. In the case of
the top seven biggest banks on the local market, the interest rates
offered for 12-month term household deposits are 7.7% (8% for deposits
made online) at UniCredit, 7.2% at CEC Bank, 6.75% at Banca
Transilvania, 6.5% at BRD, Raiffeisen and ING, and below 5% at BCR.
Aramis Components, a company owned by the founders of Aramis Invest,
the biggest furniture manufacturer and exporter on the local market,
has applied for RON 27.8 million state aid for an investment of about
RON 57.2 million, based on the H.G. 807/2014 scheme, aimed at boosting
investments with a major impact on economy, according to data from the
Finance Ministry’s website. The company was founded in 2022 and
manufactures non-woven textile fabric, which is used, among other
things, in the production of sofas and mattresses, according to
Alexandru Griguță, CFO of Aramis Invest.
Hirsch Porozell, the local subsidiary of the Austrian company bearing
the same name, which manufactures expanded polystyrene, plans to invest
about RON 5.5 million in 2022. The company ended 2021 with a RON 205.3
million turnover, up by 53% year-on-year. The RON 19.8 million profit
was 39% higher and the average number of employees reached 201, about
20 more than in the previous year. Hirsch Porozell’s local subsidiary
expects a turnover of approximately RON 200 million in 2022.
Minister of Development, Public Works and Administration Cseke Attila
inaugurated the new sports complex in Biharia Commune, Bihor County, on
Saturday, 10 September. The Development Ministry ensured the RON 9
million financing for this investment through which children will
benefit from a suitable space where they can exercise and practice
sports during the cold season. The sports hall is also a place for the
local community, where people can enjoy sporting events together, such
as football or basketball matches.
German group Schwarz has contracted a EUR 100 million loan from the
European Bank for Reconstruction and Development (EBRD) to finance the
expansion of Kaufland hypermarkets network in Romania and the Republic
of Moldova. Kaufland, which operates on the segment of hypermarkets
with low prices, has a network of 155 stores in Romania. The company
aims to open at least ten stores by 2022, with a total investment
budget of EUR 375 million.
Last week, the Parliament passed a draft law compelling schools to
organize adjustment groups for students who return to Romania. Pupils
will benefit from Romanian language, culture and civilization classes
in parallel with compulsory classes, according to a press release. The
law aims to facilitate the educational transition of students
previously going to schools abroad and to ensure the creation of a
coherent context for such an approach. Based on previous research and
the current situation in terms of educational integration, the need for
such a law is obvious and highly topical.
The Social Democratic Party (PSD) has submitted a draft law to the
Senate proposing that January 6 (Feast of the Baptism of the Lord) and
January 7 (Feast of the Holy Prophet John the Baptist) be declared
legal holidays. The initiators have indicated that 16,307,004 Romanian
citizens in Romania are Orthodox Christians, representing 86.45% of the
total declared population of the country, according to official data
from the latest census conducted in 2011.
European cities and towns are facilitating access to mental health care
professionals and psychological support for displaced Ukrainians, on
top of practical measures relating to education and housing. As the war
nears its seventh month, refugee activists and mental health experts
have also warned that the mental health toll on those who have fled the
country must not be overlooked. According to experts, the sudden
displacement caused by the conflict has increased the prevalence of
mental health conditions, including post-traumatic stress disorder,
depression and anxiety.
The number of Romanians earning more than EUR 1,000 net per month
reached nearly 930,000 in June 2022, up by 18% (140,000 people)
year-on-year, and double the level recorded in June 2018. The average
net salary in public administration, where 200,000 civil servants work,
exceeded the EUR 1,000 threshold some time ago, and stood at almost RON
5,400 in June 2022, according to data from the National Institute of