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
Annual inflation rate grew to 15.3% in August, after having stood at
15% in July and at 15.05% in June, according to data published by the
National Institute of Statistics (INS) on Monday, 12 September. The
biggest increases in the past year were recorded by food products, of
18.22%, followed by non-food goods - 15.9%, and services - 8.26%.
Consumer prices rose by 0.6% in August compared to July 2022, following
a 1.82% increase in prices of food products, a 0.19% advance of prices
of non-food goods and a 0.37% increment in the prices of services.
According to the statistics from the National Trade Register Office
(ONRC), the number of companies deregistered at national level grew by
8.87% in the first seven months of 2022, compared to the similar period
of 2021, when 41,007 de-registrations had been recorded. Most
de-registered companies were recorded in Bucharest - 6,536 (up by 8.07%
year-on-year), Cluj County - 1,862 (up 13.81%), Timiș County - 1,861
(up 4.49%) and Constanța County - 1,825 (up 13.85%) counties.
The Ministry of Finance borrowed RON 290.5 million from the domestic
market at a growing yield. European monetary policy became more
restrictive at the end of last week, thus triggering higher borrowing
costs for most countries. In Romania, inflation grew above expectations
again in August. The Finance Ministry placed bonds on the market below
the RON 300 million prospectus, while demand from investors stood at
little over RON 404 million. The average yield of auctioned bonds
maturing in April 2028 reached 8.38% on Monday, 12 September, compared
to 8% at the end of August.
Mihai Călin Precup, a Secretary of State in the Ministry of Finance,
stated on Monday, 12 September that the Romanian state owned, through
the Romanian Government, 216 companies, which had about 83,000
employees and generated about 7% of Romania’s GDP. Mr Precup also
indicated that the Ministry of Finance encouraged the issuance of green
bonds for the development of the capital market, stressing that the
institution was working on the legislative framework for the first
green government bonds issue. Moreover, several series of Fidelis
government securities issues have been launched this year. Eight rounds
of Fidelis bond issues have been launched since 2020 up to present,
following which RON 7.4 billion and EUR 1 billion were raised.
On Monday, 12 September, BRD Groupe Societe Generale added the instant
payments service to its portfolio, having thus become the eighth bank
on the local market to implement the solution allowing clients to pay
and receive money within maximum ten seconds, along with Banca
Transilvania, CEC Bank, Libra Internet Bank, Banca Comercială Română,
Patria Bank, Vista Bank and Raiffeisen Bank. The payments processing
infrastructure has been developed by Transfond, the operator of the
Interbank Payments Automated Clearing House, in collaboration with the
commercial banks, the Romanian Association of Banks, which is the
administrator of the national payments scheme, and with the National
Bank of Romania (NBR), which is the supervisor of payment schemes.
CEC Bank has expanded its product portfolio by adding a bank account
package for individuals, with zero maintenance costs in the first year
and 7.2% annual interest on the deposit with subsequent sums put into
the bank account. The deposit allows clients to save at their own pace,
by adding additional amounts, either through automatic payments or
occasional deposits, according to the bank officials. Those who
constantly deposit RON 300 per month can thus accumulate nearly RON
21,000 net savings in five years, a sum that can ensure reserve funds
for unforeseen situations or home renovation expenses, according to a
calculation made by CEC Bank.
ING Bank, the fourth biggest bank on the local market asset-wise,
re-became the leader of the primary dealers ranking at the end of the
first half (H1) of 2022, after having filled the second place in the
first months of this year and in the second half of 2021. Previously,
in the first months of 2021 and at the end of 2020, ING had ranked
first in the top of primary dealers. ING had returned to the top of
this ranking in the autumn months of 2020, having dethroned UniCredit
Bank at the time.
Banca Transilvania has nearly 50 offices dedicated to customer
consultancy, in 19 localities across Romania, according to a press
release. These premium units offer clients a new kind of experience
through consultancy, financial education and self-banking options. BT
Dialog branches are first and foremost a meeting place. There, the bank
has teams ready to provide financial information and recommendations
regarding all the services, products and online banking solutions,
according to Banca Transilvania CEO Omer Tetik.
The developer and operator of mixed-use urban regeneration projects
Iulius, together with its partners from Atterbury Europe, have signed a
EUR 410 million financing for the national network of Iulius Mall
regional shopping centers in Iași, Cluj-Napoca, Suceava and Timișoara.
According to a press release, the loan supports the developer’s
long-term investment plans, aimed at consolidating the status of its
projects as regional leaders on the retail and entertainment segments.
A total of 16 electric vehicle charging stations are operational in
Timisoara on the main streets and in the central area. The charging fee
is RON 1.10/kWh, VAT included. The investment amounted to RON 2.2
million (VAT not included) of which 90% was financing from the
Environmental Fund Administration. The installation and operation of
the stations is ensured by Evgo Green Motion. These are the first
charging stations installed following a public investment, according to
a press release issued by Timisoara City Hall on Monday, 12 September.
Education needs major investments, especially university education. The
Rector of "George Emil Palade" University of Medicine, Pharmacy,
Science and Technology (UMFST) in Târgu Mureș, Professor Leonard
Azamfirei, PhD, has announced the signing of a EUR 20 million financing
contract with the European Investment Bank (EIB), for several projects
included in the "Novum Forum" Science and Technology University Park.
Save Romania Union (USR) representatives have accused the Social
Democratic Party (PSD) and the National Liberal Party (PNL) of
systematically refusing, for four months already, to include the draft
law submitted by USR on the abolishing of MPs’ special pensions into
the legislative circuit, to be debated and voted on during the
Parliament plenary session. On Monday, 12 September, USR group leaders
in the Chamber of Deputies and the Senate called on the presidents of
the two chambers of Parliament to organize a joint permanent bureau to
include the aforementioned draft law onto the agenda.
The Ministry of Agriculture and Rural Development has put up for public
consultation a draft decision which stipulates the allocation of RON
34.6 million (equivalent to EUR 7 million), through a state aid scheme,
for the establishment of mountain sheepfolds. The maximum total
eligible amount of a project for this type of investment is RON
300,000. Moreover, the aid must not exceed 50% of the total eligible
The three largest political groups in the European Parliament have
backed proposals to end subsidies for biomass used in power plants and
exclude primary wood burning from the EU’s renewable energy targets.
The biomass amendments, part of the EU’s renewable energy directive,
will be submitted to a plenary vote in the European Parliament on
Wednesday, 14 September.
The average net wage in economy was RON 3,975 in July, RON 2 (-0.1%)
lower than in the previous month, and up by 12.1% year-on-year. The
highest value of the average net wage was recorded in information
technology services, including computer service activities, (RON
9,549), and the lowest one was recorded in hotels and restaurants (RON
2,273), according to data published by the National Institute of
Statistics (INS) on Monday, 12 September.
Romania recorded a negative natural increase in population of 4,973
people in July 2022, up from 4,766 in the same period of 2021,
according to data published by the National Institute of Statistics
(INS) on Monday, 12 September. 15,214 babies were born in July 2022,
1,021 more than in June 2022, but the number of deaths was 20,187
(10,564 men and 9,623 women), 1,608 more (820 men and 788 women) than
in June 2022.
Save Romania Union (USR) Senator Anca Dragu has called for the
implementation of the "Zero Taxes on Minimum Wage" measure, amid an 18%
increase in food prices and an even 30% rise in prices of some basic
products. During a press conference held at the Palace of Parliament on
Monday, 12 September, the former Finance Minister said that by applying
the "Zero Taxes on Minimum Wage" measure, a person earning the minimum
wage would receive RON 2,550 instead of RON 1,524.