Daily Newsletter - 15 March 2021


FIC Daily Newsletter | 15.03.2021
FIC (1) || Macroeconomic (3) || Financial (3) || Investment (2) || Legislative (2) || European News (1) || Social (2)
FIC launched second edition of “Leaders for Excellence in Healthcare” project on Thursday, 11 March

The Foreign Investors Council (FIC) launched on March 11, 2021, the second edition of the project Leaders for Excellence in Healthcare, dedicated to the medical personnel in management positions in public hospitals in Romania. The project is developed in partnership with the Ministry of Health and will take place online during the month of March. "The Romanian medical system needs constant investments, both in infrastructure and in human resources, not only to ensure its sustainability, but especially to be prepared for shocks and crises that can amplify weak structural points. Taking note of these fundamental elements and wanting to contribute to the reform of the Romanian healthcare system, FIC decided to continue the projects dedicated to doctors. Leaders for Excellence in Healthcare aims to improve the skills and knowledge of the doctors in leadership positions and to continue to adapt to the current realities and daily practices," stated FIC President Ramona Jurubita. The coordinator of the project, member of the FIC Board, Dana Constantinescu, pointed out that this year, in the context of the pandemic and of the urgent needs of the medical system, FIC added to the project two new modules - funding procedures and public procurement and funding sources for hospitals – and extend it also to a larger target group, with participants from hospitals across the country.

Industrial production decreased in January
Industrial production decreased in January 2021 compared to the corresponding month of the previous year, by 2.3% as a gross series and by 0.9% as a working days and seasonally-adjusted series, according to the National Institute of Statistics (INS) data. Electrical and thermal power, gas, hot water and air conditioning production and supply stagnated at the level recorded in January 2020.
Average annual economic growth rate estimated for 2021 - 2024 is 4.7%
The average annual economic growth rate estimated for the period 2021 - 2024 is 4.7%, with a 5% peak in 2023, according to the Winter Territorial Forecast, published by the National Commission for Strategy and Prognosis (CNSP). The south of Romania is expected to record the biggest advance, of over 5% of GDP. 4.2% average annual growth is estimated for the tertiary sector, with a focus on the development of modern services.
Trade balance deficit decreased to EUR 1.193 billion in January
Trade balance deficit stood at EUR 1.193 billion in January 2021, down by EUR 124.6 million against the similar period of 2020, after imports dropped 5.8% and exports fell by 4.9%, according to data published by the National Institute of Statistics (INS) on Friday. According to the INS, the value of intra-EU trade in goods reached EUR 4.092 billion for exports and EUR 4.907 billion for imports in January 2021, representing 75.7% of total exports and 74.4% of total imports.
Banca Transilvania to launch a share repurchase program
Banca Transilvania (stock exchange symbol TLV), the biggest credit institution on the local market, has informed investors that a share repurchase program was decided through the Board of Directors’ Resolution adopted on 8 March 2021. The volume of shares that the company will be able to buy will be established in accordance with the provisions of article 3 of Delegated Regulation (EU) 2016/1052. The repurchase action will be carried out during the interval 10 March – 19 November 2021.
Bucharest Stock Exchange gained RON 2.77 billion from capitalization
Last week, Bucharest Stock Exchange (BSE) gained RON 2.77 billion, 1.6% respectively, from capitalization, and the value of transactions with shares was up 90.47% against the previous week. According to data published by BSE, the stock market capitalization reached RON 174.019 billion on 8-12 March, compared to RON 171.239 billion, the value recorded in the previous week.
Bucharest Stock Exchange plans to grant a dividend with a 4.3% yield
Bucharest Stock Exchange (BVB)’s Board has proposed distributing over 90% of last year’s profit in the form of dividends, according to the notice to attend corresponding to the shareholders’ meeting scheduled for 19 April, published by the Romanian capital market operator on its website. The dividend stands at RON 1.0672/share, which, related to the price of BVB share on Friday, of RON 24.5, offers a gross yield of 4.3%.
Ministry of Transport could renew up to 100 kilometres of railway per year
The Ministry of Transport and Infrastructure has prepared a package of investments and reforms targeting railways’ modernization and renewal, and estimates that up to 100 kilometres will be renewed per year, Ramona Moldovan, a Secretary General in the Ministry, has stated. According to her, the Ministry of Transport and Infrastructure is interested in trains’ modernization with the help of modern hydrogen-based electric technologies, in order to reduce the level of pollution and to increase efficiency.
E.ON has installed a photovoltaic power plant at Cibin Mill in Sibiu
E.ON Energie Romania has installed a photovoltaic power plant, a project estimated at EUR 330,000, at Cibin Mill in Sibiu, which has thus become a producer of electrical power from renewable sources. The power will be used for its own consumption, during the production process. The photovoltaic power plant has a power of 443.42 KWp (direct current) and 360 KWh (alternating current) and includes 1,584 photovoltaic panels.
Employer and employees continue to receive support from the state
On Friday, President Klaus Iohannis promulgated the law approving Government Emergency Ordinance 120/2020 which establishes certain measures to support employees and employers amid the epidemiological situation generated by the spread of SARS-CoV-2. The employees of employers whose activity was suspended due to the SARS-CoV-2 outbreak will thus benefit from payments stipulated by law, calculated in relation to the period during which the activity in question was suspended.
Local taxes and charges in Bucharest will increase in 2022
Local taxes and charges in Bucharest are expected to increase by 2.6% in 2022, corresponding to the inflation rate from 2020, according to a draft decision put up for public debate on Bucharest City Hall’s website. This is the smallest increment of the past three years - in 2021, local taxes and charges have been increased by 3.8%, and they were up 4.6% in 2020.
The European Commission will attempt to protect the future of platform workers in the EU
The European Commission will attempt to protect the future of platform workers in the EU by setting minimum standards and potentially enforcing pension entitlements and insurance obligations. Future legislation on improving the working conditions of platform workers is set to be put forward by the EU executive later this year. Meanwhile, a public consultation has been launched on the plans as a means to identify the means by which platform workers can be afforded more labour rights in the upcoming rules.
Romania has fallen in the global ranking of anti-Covid-19 vaccination
Romania has rapidly fallen in the global ranking of anti-Covid-19 vaccination, from the 6th place on 23 February to the 17th place at present, in terms of full two-dose scheme administration related to the population, according to data aggregated by the New York Times. Among the European Union countries, Romania has currently been outranked by Malta, Poland, Denmark, Slovakia and Greece. Hungary and Estonia share the same place as Romania in terms of percentage of people vaccinated with the second dose, but have higher first dose vaccination rates.