News

Daily Newsletter - 12 September 2022

Summary

FIC (1)
Macroeconomic (3)
Financial (3)
Investment (4)
Legislative (2)
European News (1)
Social (1)
FIC 
FIC launching event of the "Va Urma" project with the participation of the Prime minister

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 capacity.

Foreign investors from Romania are launching a real country project: From solving the waste problem to debureaucratizing cancer

Romania, what do you want your future to look like?

Foreign investors from Romania are launching a real country project: From solving the waste problem to debureaucratizing cancer

FIC: We must also prepare the economy of the future, not just the next period

FIC launched a new development strategy for Romania

Foreign investors align with Govt. on ten priorities for Romania’s future

Romania, what do you want your future to look like?

Prime Minister Ciucă: We must reduce energy waste

Romania, what does your future look like?

Foreign investors are aligned with the government. Ten priorities for the future of Romania

Foreign investors from Romania launch a real country project: From solving the waste problem to debureaucratizing cancer treatme

Foreign Investors Council launches 2022 edition of ‘Va Urma’ project

Foreign investors align themselves with the government. on ten priorities for Romania’s future

Foreign investors align with Govt. on ten priorities for Romania’s future

Foreign investors: Romania’s economy can reach 4,400 billion lei in 18 years

Foreign investors: Romania’s economy can reach 4,400 billion lei in 18 years

Nicolae Ciucă: "We are the Government that supports investments. We allocated the largest amount in the last 32 years"


Macroeconomic 
European Commission has approved EUR 4 billion Romanian scheme to support companies
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 decreased by 0.8% in H1/2022
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% year-on-year.
Trade deficit grew by nearly EUR 5.9 billion in the first seven months of 2022
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.
Financial 
Romanians contracted a record volume of new RON-denominated mortgage loans in July 2022
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.
Banking system reacted to inflation that exceeded 15%, according to Adina Călin, CEC Bank
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
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.
Investment 
Furniture manufacturer Aramis plans to invest RON 57 million in a new factory
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.
Expanded polystyrene manufacturer Hirsch Porozell plans to invest RON 5.5 million in 2022
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 Cseke Attila inaugurated the new sports complex in Biharia, Bihor County
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 EBRD
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.
Legislative 
Schools to organize adjustment groups for students who return to Romania
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.
PSD submitted draft law to the Senate proposing that January 6 and 7 be declared legal holidays
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 News 
EU cities mobilize to address mental health toll of war on Ukrainians
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.
Social 
Number of Romanians earning more than EUR 1,000 net/month reached nearly 930,000 in June
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 Statistics.