Ten-year government bonds reached a 5.07% reference rate on the
secondary market on Wednesday, 13 October, down from 5.12%. According
to NBR data, 87 RON-denominated securities, worth RON 766 million
altogether, and 2 euro-denominated securities, worth EUR 3.1 million,
were traded on Tuesday, 12 October.
The real estate investments market in Romania totalled about EUR 570
million in the first nine months of 2021, down by 29% compared to the
similar period of last year, when the volume had stood at about EUR 890
million, according to a press release issued by JLL Romania.
Transactions totalling little over EUR 260 million were concluded in Q3
of 2021. The impact of the COVID-19 pandemic on the liquidity of the
commercial real estate market was deeper in 2021 than in 2020,
considering that several major transactions took place last year, whose
negotiations had started before the onset of the pandemic.
Industrial production grew by 5.1% in the euro area and by 5.3% in the
European Union in August compared to the same month of 2020, according
to data published by the European Union’s Statistical Office (Eurostat)
on Wednesday, 13 October. Increases in industrial production were
recorded in Denmark (12.4%), Austria (11%), Bulgaria (10.8%), Poland
(10.7%), Greece (10.3%), Slovenia (8.3%), the Netherlands (5.6%),
Croatia (5.4%), France (5.1%), Estonia and Finland (both with 4.4%),
Luxembourg (4%), Latvia (3.8%), Sweden (2.2%), Spain (2%), Germany
(1.9%) and Romania (1.1%).
Metropolitan Life, the second biggest player on the life insurance
market in Romania, recorded RON 255.9 million gross underwritten
premiums in H1 of 2021, up by 31% compared to the same period of 2020,
when the value of premiums had stood at RON 195.2 million. The
compensations paid during the period January-June 2021 amounted to RON
74.2 million, 41% more than the RON 52. 6 million sums paid in the
similar interval of 2020, according to data transmitted by the
The insurance market reached a RON 6.39 billion volume of gross
underwritten premiums at the end of the first six months of 2021, up by
13.6% year-on-year, according to the Financial Supervisory Authority
(ASF)’s report on the evolution of the insurance market in H1 of 2021.
The market remains oriented towards the general insurance activity,
with a share of 79% of the total premiums underwritten by insurance
companies. Moreover, the general insurance area continues to be
dominated by car insurance, representing about 71% of total. Car
insurance accounts for 56% of the total volume of underwritten
BCR Cercetare analysts indicate, in a report, that the National Bank of
Romania (NBR) could increase the key rate by 50 basis points during the
monetary policy meeting on 9 November. They point out that the annual
inflation rate grew to 6.3% in September, while core inflation reached
a 3.6% annual rate, from 3.2% in August. Both NBR and the National Bank
of Poland have scheduled monetary policy meetings at the beginning of
November, and BCR’s inflation estimate for October is of a nearly 7%
annual rate. NBR will subsequently take a longer break in terms of
monetary policy meetings, the next such meeting, after the one in
November, being scheduled to take place on 10 January.
Banca Transilvania has launched Practic BT Verde, the cheapest personal
loan in the bank’s offer. Interest rate is fixed until the end of the
year, being up to 3% lower than the standard BT offer for personal
loans: 7.5%/year for loans with insurance and 8%/year for loans without
a life and unemployment insurance. BT Verde is intended for the
purchase of environmentally friendly equipment, electrical household
appliances, urban mobility solutions, or materials. It can also be used
as a down-payment for loans for the acquisition of new fully electric
cars. The campaign targets individuals who can submit a pro-forma
invoice, a fiscal invoice or a commercial offer for eco-friendly
products. Those interested can apply for such a loan online or in BT
BRD Pensii, the administrator of the Pillar 2 private pension fund
bearing the same name, became a shareholder of nuclear power producer
Nuclearelectrica (SNN) following a nearly RON 15 million investment in
June 2021, according to data from the company’s half-year report. Thus,
based on the trading prices at the end of June, of RON 27.6 per SNN
share, BRD Pensii had 540,000 SNN shares. According to Bucharest Stock
Exchange (BSE) data, a special transaction of 540,000 SNN shares was
registered in the stock exchange’s system on 29 June, at a price of RON
27.7 per unit.
NEPI Rockcastle, the biggest real estate investor in Romania in terms
of value of assets in its portfolio, has obtained the building permit
for a residential complex with 256 apartments to be built near the
Vulcan Value Center shopping center in Rahova district of Bucharest.
Along with the 23-storey tower of about 250 apartments designed next to
Mega Mall shopping center in Pantelimon, Vulcan Residential Park marks
NEPI Rockcastle’s entrance onto the residential sector. The investor
has announced that it has allocated a EUR 83 million initial investment
budget for residential projects in Bucharest, Timișoara, Brașov,
Craiova, Râmnicu Vâlcea and Satu Mare.
Scandia Food, the largest canned food producer in Romania, announced on
Wednesday that it had entered the frozen food products market following
the acquisition of a latest generation frozen meat-based foods products
factory. The company was incorporated under the new entity Scandia Food
Frozen and contracted over EUR 6 million financing from CEC Bank for
this new project. Scandia indicated that it had acquired a company
whose main object of activity was the production and distribution of
frozen products, but did not mention its name.
Public institutions are no longer allowed to ask individuals and
companies for copies of endorsements or other documents that have been
issued by other state institutions, according to a draft law,
previously passed by the Senate, and subsequently adopted by
Parliament, through the final vote in the Chamber of Deputies. The new
provisions will enter into force at the beginning of next year. Public
institutions and specialized organisms of the central public
administration will thus request entities that issued the documents in
question in an electronic format to provide copies or extracts from
them based on the public service beneficiary’s express consent.
Sebastian Burduja, the Vice-Chairman of the Chamber of Deputies’
Committee on Budget, Finance and Banks, announced on Wednesday, October
13, that the draft law aimed at simplifying capital market investors’
taxation, by withholding tax and by rewarding holdings for a longer
period of time, had been submitted. Sebastian Burduja transmitted that
the draft law primarily targeted tax withholding so that investors
should no longer have to go to the National Agency for Fiscal
Administration (ANAF) on the one hand and so that ANAF should no longer
have to interact with 10,000-12,000 individual investors, but with 41
brokerage firms and fund managers on the other hand.
A recent poll revealed that more than two-thirds of Romanian citizens
believe the country should defend its interests if they go against EU
rules, even if that would mean leaving the Union. About a third of
polled people believe an exit from the EU would not affect the national
interests. Polls conducted in March and June 2021 showed that 64.2% and
64.8% of the population think that leaving the EU is a fair price to
pay for defending national interests. This rose to 68.5% in September,
demonstrating a growing indifference to the EU.
The National Committee for the Coordination of Vaccination Activities
(CNCAV) has announced that a new tranche of Pfizer BioNTech vaccine, of
over 303,000 doses, is to arrive in Romania on Thursday, 14 October.
About 3.7 million doses of anti-COVID vaccine, most of them from
Pfizer, are currently available for the population in Romania.
Transport to storage centers is ensured by the manufacturing company,
including by land. Vaccines are transported in optimal conditions, in
special containers, with carbonic ice and sealing foil.
The Ministry of Health announced on Wednesday, 13 October, that it had
distributed a new tranche of 5,692 vials of Remdesivir to healthcare
units treating Covid-19 patients. According to the Ministry’s report,
the 5,692 vials of Remdesivir 100 mg are part of the 24,160 units
purchased under a subsequent contract following the Framework Agreement
concluded by the European Commission with the manufacturing company for
EU member states.