Daily Newsletter - 14 October 2021


Macroeconomic (3)
Financial (4)
Investment (3)
Legislative (2)
European News (1)
Social (2)
Ten-year government bonds reached a 5.07% reference rate on Wednesday
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.
Real estate investments market in Romania totalled about EUR 570 million
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 EU in August
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 recorded RON 255.9 million gross underwritten premiums in H1/2021
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 company’s representatives.
ASF published the report on the evolution of the insurance market in H1 of 2021
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 premiums.
National Bank of Romania could increase the key rate to 2.00% in November
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
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 network.
BRD Pensii became a shareholder of Nuclearelectrica following an investment
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 has obtained the building permit for a residential complex
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 Romania has entered the frozen food products market
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.
A new law for reducing bureaucracy has been passed by Parliament without sanctions
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.
Draft law simplifying capital market investors’ taxation has been submitted
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.
European News 
Romanians believe the country should defend its interests if they go against EU rules
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.
A new tranche of Pfizer BioNTech vaccine is to arrive in Romania on 14 October
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.
Ministry of Health has distributed a new tranche of Remdesivir to hospitals in Romania
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.