Daily Newsletter - 14 March 2023


Macroeconomic (3)
Financial (3)
Investment (3)
Legislative (4)
European News (1)
Social (2)
Inflation resumed growth in February and grew slightly, to 15.5%
Annual inflation rate grew slightly in February, to 15.5%, after having decreased to 15.1% in January, as priced of food products rose by 22.3%, those of goods were up 12.7% and services were 10.3% more expensive than in February 2022, according to data published by the National Institute of Statistics (INS) on Monday. Consumer prices were up 0.98% in February compared to January 2023. The biggest increase was recorded in food products, of 1.8%. Moreover, according to the same INS data, gas prices grew by 42% in February 2023 year-on-year, while the price of electricity rose 27%.
Romania’s trade deficit grew by 9.5% in January 2023 compared to the same period of 2022
Trade deficit was EUR 2,338 million in January 2023, EUR 203.6 million (+9.5%) higher than the level recorded in January 2022, the National Institute of Statistics reported on Monday, 13 March. According to the cited source, exports totaled EUR 7,160.2 million and imports stood at EUR 9,498.2 million in January 2023. Exports in January 2023 were up 6.0% and imports increased by 6.8% year-on-year.
Ministry of Finance borrowed RON 623 million from banks on Monday, 13 March
The Ministry of Finance borrowed RON 623 million from banks on Monday, 13 March, through an auction of government bonds with a nominal value of RON 500 million, maturing in 2027, at an interest rate of 7.26% per year. Seven primary dealers participated in the auction. Total demand amounted to RON 1.13 billion, of which banks bid RON 1.12 billion on their own behalf. The coupon rate was 2.50% and the yield to maturity for the average auction price was 7.26%.
Allianz-Tiriac has developed the first life insurance policy that can be contracted 100% online
Allianz-Tiriac has developed the first fixed-price life insurance policy that can be contracted 100% online. It is called My Protect and has been created for people aged 18-69. The insurance is structured in two packages, Standard and Optimum, depending on the budget and the level of protection desired, according to Virgil Șoncutean, CEO of Allianz-Tiriac Asigurări.
HR Club and BCR have launched the Joblandia platform
HR Club, the association of human resources professionals in Romania, has launched, in collaboration with BCR, Joblandia, a platform facilitating high school students’ access to practical training in companies, during the A Different Kind of School week. With the help of the platform, HR Club will launch the Joblandia Week for high school students, a national program with over 50 locations available in Bucharest, Cluj, Iaşi, Constanta, Giurgiu, Alba-Iulia, Ploieşti, Timişoara, Braşov, Tg. Mures, Covasna, Lugoj, Sf. Gheorghe, Miercurea Ciuc, Roman, Piteşti, Salonta, Satu Mare.
OTP Asset Management has launched discretionarily managed portfolios for its clients
OTP Asset Management Romania has launched a new investment product, called Discretionarily Managed Individual Investment Portfolios, which is a form of investments management in which decisions to buy and sell financial instruments are made on behalf of clients by investment professionals such as OTP Asset Management Romania SAI SA. The product can be used by individuals and legal entities.
One United Properties has contracted a USD 20 million investments loan from Banca Transilvania
Real estate developer One United Properties has concluded a financing agreement with Banca Transilvania for a USD 20 million investments loan, over an up to 42 month crediting period. The funds will be used to finalize One Cotroceni Park’s residential component, currently in an advanced stage of construction, and which must be completed in 2023. More than 90% of apartments have already been pre-contracted by clients.
Romanian National Post Company wants to enter the courier services market in Romania
Valentin Ștefan, the Director General of the Romanian National Post Company, has stated that the Romanian Post Company, the biggest employer in Romania, with 23,000 people, aims to enter the courier services market in Romania. The company will invest RON 100 million in 3,000 easy box points for this purpose. The Romanian Post Company had a RON 1.5 billion (about EUR 300 million) turnover in 2022. As a comparison, the courier market in Romania was RON 6 billion. For 2023, The Romanian National Post Company expects to record a 10% higher turnover in 2023, namely RON 1.65 billion.
JD Agro Cocora Group bought a farm in Constanța County following a EUR 10 million transaction
JD Agro Cocora Group, owned by Danish investors through Romania Farm Invest A/S, has bought a farm of about 1,370 hectares in Constanța County following a EUR 10 million transaction. The new property will be integrated into the JD Agro Amzacea farm, located in Amzacea Commune, Constanta County. The acquired farm belonged to a French farmer who had started the business in 1998. It does not require any further investments and can already be integrated into JD Agro Amzacea’s agricultural circuit. In fact, one of the reasons why JD Agro Cocora opted for this acquisition is the fact that the land is of very good quality and located in the vicinity of its own farm.
Finance Ministry prepared the order based on which accounting records must be kept for five years
Mandatory accounting records and relevant supporting documents shall be kept in archives for five years calculated starting from 1 July of the year following the end of the tax year they were drawn up in, including payroll statements, according to Law 36/2023. A law had been adopted in 2022 which stipulated that the change shall only apply for payroll statements. However, in 2023, Law 36 completely reformulated the provisions on the archiving of all financial-accounting documents.
PNL has withdrawn the draft law restricting the right to set up associations
Liberal (PNL) Senator Daniel Fenechiu stated on Monday, 13 March, that he had submitted to the Standing Bureau of the Senate a request for the withdrawal of a controversial draft law which, according to the civil society, restricts the right to establish associations, inhibits the action of civil society and limits the right of non-governmental organizations to bring cases of illegality to justice. Several NGO representatives protested in front of Victoria Palace a week ago, demanding the withdrawal of the draft law.
Lawyers will be allowed to retire early no more than five years before reaching the standard age
Lawyers will be allowed to retire early, by law, no more than five years before reaching the standard retirement age if they have completed a full period of service in the legal profession only, according to a draft law adopted by senators. Under the same normative act, the ban on practising the profession of lawyer upon reaching the age of 70 will also be removed from the law. The initiators of the draft law point out that Article 38 on early retirement in Law 72/2016 on the pension system and other social security rights for lawyers does not meet all the conditions for its implementation.
Children’s allowance will be established from the child’s first day of life
On Monday, 13 March, the Senate unanimously adopted (98 votes "in favor") a legislative proposal submitted by Save Romania Union (USR), according to which the right to child allowance shall be established from the first day of the child’s life and not from the month following the month when the child was born, as provided for by the current legislation. The initiators point out in the explanatory memorandum of the draft law that "the direct and immediate benefit of such a change is an increase in the new parents’ income by an amount of money representing support for the period between the day of birth and the last day of the same month".
European News 
Romania finds ways to unlock EUR 3 billion recovery plan payment
The government has found ways to address the milestones needed for Romania to get the second payment of the national recovery and resilience plan – funds that the Commission has blocked since January. Romanian officials and Commission representatives have discussed the milestones for the past weeks. To reach one of the milestones, the debated EU Whistleblowers Directive had to be correctly transposed. To overcome issues identified by domestic lawmakers, the government agreed that it would propose to replace "strong indications" with "indications" in the law that transposes the directive.
The value of nursery vouchers is to increase by RON 30, to RON 600 per month
The value of nursery vouchers is to increase by RON 30, to RON 600 per month, according to a draft order put up for public consultation by the Ministry of Labor. According to Law 165/2018, these vouchers are granted to employees (in both the public and the private sectors) who do not benefit from maternal/paternal leave and from the allowance granted for raising children up to the age of two.
The number of vacant jobs at national level has reached 47,759
The number of vacant jobs at national level has reached 47,759, while employers in the European Economic Area offer 287 positions to Romanian workers, through the Eures Romania network, according to the National Employment Agency (ANOFM). Of the 47,759 vacant jobs declared by employers to employment agencies, 2,810 are for higher education graduates.