Romania’s total external debt decreased by EUR 66 million during the
period January-April 2022, to EUR 134.5 billion, of which government
debt represented EUR 56.3 billion, down by EUR 2.4 billion against the
level recorded on 31 December 2021, according to data published by NBR
on Tuesday. Of the total volume, external debt was EUR 93.9 billion and
intercompany lending accounted for EUR 40.6 billion. NBR data show that
long-term external debt totalled EUR 94.39 billion on 30 April 2022
(70.2% of the total external debt), down by 2.8% from 31 December 2021,
while short-term external debt stood at EUR 40.15 billion (29.8% of the
total external debt), up by 7.2% against 31 December 2021.
Nearly half (46.7%) of business people, managers and senior employees
in companies operating on the local market believe that Romania could
enter stagflation by the end of the year, which is prompting
institutions to secure their businesses, in parallel with a decline in
appetite for investments and consumption. These were the conclusions of
a survey conducted by the payments institution Moneycorp and the
consultancy firm Frames. When asked what the biggest threats for
Romanian economy were in the following six months, 33.3% of company
executives mentioned inflation – the increase in prices of energy,
materials, services; the decrease in sales (25%); the deepening
financial blockage (12.5%); partners’ insolvency/bankruptcy (12.5%) and
the regionalization of the war (10.5%).
The balance-of-payments current account posted a EUR 7.57 billion
deficit during the interval January-April 2022, compared with EUR 4.11
billion in the same period of last year. The current account dynamics
continued to worsen amid the rising net imports of goods and outflows
from the primary income account. On the other hand, foreign direct
investments continued to grow. Romania’s external position is weaker
than analysts estimated at the beginning of the year and the current
account deficit is about to substantially exceed the 7% of GDP level
recorded last year.
BCR, the second biggest bank in Romania asset-wise, continued to rank
first in the top of primary dealers at the end of Q1 of 2022, after the
bank had climbed one place at mid-2021, according to data published by
the Ministry of Finance. ING Bank, the fourth largest bank on the local
market asset-wise, filled the second place in the ranking of primary
dealers in March 2022, after having fallen one place in June 2021. ING
had ranked first in the classification of primary dealers in the first
months of 2021 and at the end of 2020. ING had returned to the top of
this ranking in the autumn months of 2020, when it had dethroned
UniCredit Bank.
Libra Internet Bank, an employer with more than 1,000 employees on the
local market, has started publishing the ranges of salaries it offers
to future employees in its job ads, thus marking a first in the banking
sector, but also among recruiting companies in the office area. The
highest salary is offered to a software developer (Creatio Developer)
in the quality management division, who can earn between RON 7,600 and
RON 12,900 per month, according to calculations made by ZF based on
data from Libra’s job ad.
TBI Bank, with operations in Romania, Bulgaria, Germany, Greece and
Lithuania, has reported a EUR 10.2 million quarterly net profit for
Q1/2022, up by 40% year-on-year. In the first three months of 2022, TBI
continued to integrate new partners through the BNPL (Buy Now, Pay
Later) solution and entered the Greek market. In Romania, the bank
granted nearly 120,000 loans in the first three months of 2022 and
provided EUR 154 million total financings on all the markets in the
region where it is present, 40% more than in the same period of the
previous year.
On Tuesday, Banca Transilvania announced Ioana-Mihaela Ilaș’s
appointment as Deputy CEO, thus replacing Gabriela-Cristina Nistor, who
took over the management of Idea Bank, acquired by BT last year. The
decisions will enter into force after obtaining the necessary approvals
from the supervisory authorities and after finalizing all necessary
formalities. All the other ongoing mandate contracts shall remain in
force and unchanged, the bank indicated.
Foreign direct investments grew by 34% in the first four months of this
year, to EUR 3.149 billion, compared to EUR 2.35 billion in the same
period of 2021, according to data published by the National Bank of
Romania. The number of companies with foreign capital newly established
in Romania increased by 27.8% in the first four months of 2022 compared
to the similar interval of last year, to 2,186 units, with a total
subscribed share capital of USD 14.008 million, 31.1% lower than the
one of companies registered in January-April 2021, of USD 20.326
million, according to data from the Trade Register Office.
Bihor County Council has launched a RON 289.4 million (EUR 58.5
million) project, VAT included, for the construction of a metropolitan
ring road, which will bypass Oradea in the south, about 5 kilometers
away from the current ring road. The financing for the project will be
ensured through the "Anghel Saligny" National Program, from the
allocations for Oradea municipality and for Bihor County Council. More
than 180 million has been allocated for the two institutions
altogether, according to a press release issued by Bihor County
Council.
Alma Health & Spa Retreat, a four-star wellness & wellbeing
resort, was inaugurated in Lacu Sărat resort, Braila County, at the
beginning of June, following a EUR 20 million investment, EUR 8 million
more than the initially estimated budget. The complex was developed by
Eldomir Impex, a company controlled by businessman Vasile Dogărescu,
owner of Eldomir gas stations chain and of other agricultural
businesses under the same brand, according to data transmitted by
company representatives on Tuesday.
The interim president of Save Romania Union (USR), Cătălin Drulă has
accused Home Affairs Minister Lucian Bode of not taking a stand against
the "butchering" in Parliament of the emergency ordinance (OUG)
amending the Traffic Code and of thus becoming an "accomplice". The USR
leader has also criticized Transport Minister Sorin Grindeanu for not
participating in the specialized parliamentary committee’s meeting and
for claiming he was not feeling well.
On Tuesday, Save Romania Union (USR) requested the PSD-PNL coalition to
add USR’s draft law reducing VAT on fuels onto the agenda. PSD and PNL
leaders rejected the request made by the leader of USR group, Ionuț
Moșteanu, even though the VAT reduction would entail lower petrol and
diesel prices, something Romanians have been calling for, including
during the protests held during this period, according to a press
release of the party.
French President Emmanuel Macron will be on an official visit to
Romania and Moldova next Tuesday and Wednesday (14-15 June) and France
is "ready" to unblock the Ukrainian port of Odessa. The Elysée
announced on Friday (10 June) that French President Emmanuel Macron
will visit Romania on Tuesday "alongside French troops" deployed in the
NATO forward base, where he will meet the Romanian president. 500
French soldiers are present there, recently joined by Belgians.
Emmanuel Macron’s official trip will continue in Moldova, to show
France’s support for the country which has been particularly affected
by the consequences of the war in Ukraine. Moldovan President Maia
Sandu recently came to meet Macron in Paris on 19 May.
The average monthly pension (calculated by taking into account all
categories of pensioners - social security, disability, survivor’s
pension etc. paid by national pension houses) was RON 1,846 in Q1/2022,
up by 9.9% against the previous quarter, according to a press release
issued by the National Institute of Statistics. The average state
social security pension was RON 1,772, and the ratio between the
average net nominal state social security pension for age limit with
full contribution period (excluding taxes and contributions to the
social health insurance system) and the average net wage was 54.4%
(compared to 50.9% in the previous quarter). The average state social
security pension increased by 10.2%.
More than six out of ten Romanians (66.5%) say they have not managed to
save any money, and most (77.6%) of those who have put some money aside
have accumulated less than EUR 10,000, according to a survey conducted
by CEC Bank in partnership with banking comparator FinZoom.ro. At the
other end of the scale, only 9.8% of Romanians have saved more than EUR
20,000. When asked how much money they managed to save each month,
52.8% of those interviewed said they did not manage to put anything
aside, 21.8% save less than RON 300, 13.6% - between RON 300 and RON
600, and 5.8% - between RON 600 and RON 1,000.