News

Daily Newsletter - 15 November 2021

Summary

Macroeconomic (3)
Financial (4)
Investment (3)
Legislative (1)
European News (1)
Social (2)
Macroeconomic 
Romania ranks last among the 27 EU member states in the 2021 edition of DESI
Romania ranks last among the 27 European Union member states in the 2021 edition of the Digital Economy and Society Index (DESI), which tracks the progress of EU countries in their digital competitiveness in sectors such as human capital, broadband connectivity, integration of digital technology in businesses’ activities and digital public services, the European Commission announced on Friday. Romania fills the 26th place on Human capital, scoring below average on most of the indicators.
Romania recorded the fourth annual decline in industrial production in EU in September
Romania recorded the fourth annual decline in industrial production in the European Union in September, according to Eurostat data. Industrial production in Romania thus decreased by 3.7% compared to September 2020. Slovakia (-4.9%), Portugal (-4.8%) and the Czech Republic (-4%) were the only EU member states to have recorded bigger declines. On the other hand, the best evolution was recorded in Ireland (+ 45.4%). Furthermore, monthly industrial production in Romania decreased by 2%, also one of the sharpest falls in the EU.
PSD has proposed several economic measures aimed at supporting Romanian companies
The Social Democratic Party (PSD) has proposed several economic measures aimed at supporting Romanian companies, those in rural areas, and companies set up by students or women, according to a document. The party supports the provision of grants and guarantees, which can reach up to 100%, to companies in certain fields of activity, and is considering a package to boost domestic production and "Made in Romania" supply chains. However, the Social Democrats are also talking about supporting inventions, about digitalization and e-commerce, but also about organizing an annual contest to designate the "Capital City of Technology".
Financial 
ING Bank has launched a Black Friday offer, valid during the period 11-17 November
ING Bank has launched a Black Friday offer, valid during the period 11-17 November, allowing customers who use ING Credit Cards in eMAG, Flanco, iStyle and Mobexpert physical and online stores to benefit from 18 interest-free installments. Moreover, customers who want to obtain a personal loan can benefit from a 1% interest reduction for new amounts.
Zdenek Romanek is the new CEO of Raiffeisen Bank Romania
Raiffeisen Bank International (RBI) Group has appointed the new CEO of Raiffeisen Bank Romania, following an international selection process, and Zdenek Romanek will join Raiffeisen Bank’s team starting from 1 February 2022 and will take over the mandate after receiving the National Bank of Romania’s approval. He will take over from Steven van Groningen, who has run the bank for the past 20 years. Steven van Groningen, whose 20-year term as President and CEO will end, will ensure the bank’s management during the transition period.
Banca Transilvania recorded a RON 1.67 billion consolidated net profit
Banca Transilvania, the largest credit institution in Romania, has reported a RON 1.67 billion consolidated net profit for the first nine months of 2021, compared to RON 1.056 billion in the same period of 2020, according to the report published at Bucharest Stock Exchange on Friday. The group’s operating income grew from RON 3.25 billion to about RON 3.62 billion, while assets stood at about RON 118 billion. On the other hand, Banca Transilvania recorded a RON 653 million net profit at group level in H3/2021, almost double than the level reported for the similar period of 2020, while revenues increased from RON 1.16 billion to about RON 1.2 billion.
Euroins Romania paid RON 750 million compensations for more than 90,000 damage cases
Euroins Romania had paid RON 750 million compensations for more than 90,000 damage cases by September 2021, while in October and in the first week of November it paid over RON 350 million for over 30,000 such cases according to a press release. The aforementioned source also indicates that the number of compensations paid every day grew by 20%. Moreover, the average compensations paid for bodily injuries caused by accidents stood at RON 45,657 in 2020, and increased to RON 67,566 in 2021.
Investment 
AFI plans to invest EUR 20 million in a retail park in Arad
Doron Klein, CEO of AFI Europe Romania and the Czech Republic, has stated that AFI plans to invest EUR 20 million in a retail park in Arad. The new retail park will have about 30,000 square meters of outdoor area, and a large part of it will be opened by the end of next year or at the beginning of 2023, Dorok Klein added.
Constanta will have a 5,000-seat multipurpose center
The Ministry of Development, through the National Investment Company (CNI), will invest RON 113.9 million (EUR 23 million) for the construction of a 5,000-seat multipurpose center in Constanta. The future multipurpose center in Constanţa will have three levels, an area of 18,500 square meters and will include the multifunctional court area, sized for handball, basketball and volleyball courts, an area with stepped row of seats for the public, VIP spectators and media representatives, as well as places for people with disabilities.
CEC Bank to grant RON 175 million financing for the construction of ClusterPower data center
CEC Bank finances the construction of the ClusterPower data center in Dolj County, a RON 208 million greenfield investment, through a RON 175.3 million pre-financing loan contracted over an eleven-year crediting period. The project also benefits from state’s support, through the state aid scheme aimed at boosting investments with a major impact in economy. PCF Investment Banking acted as Cluster Power’s exclusive financial consultant in the financing facility’s structuring, negotiation and implementation.
Legislative 
Romanian Ornithological Society calls on President not to promulgate the amendments to a Law
The Romanian Ornithological Society has called on President Klaus Iohannis not to promulgate the amendments to the Law on Hunting and Protection of the Game Fund, recently adopted by Parliament. The new form of the law provides for two important changes. The first amendment targets the cancelation of the system of annual hunting quotas for migratory bird species and its replacement with a maximum number of each species allowed daily for each hunter. The second change targets the reduction of the internship time required to acquire the status of hunter.
European News 
Government adopted a law that sets up a scheme to compensate consumers for high energy prices
A law recently adopted by the Romanian Government sets up a scheme to compensate consumers for high energy prices. It also introduces a tax of 80% on additional income generated by electricity producers. However, the tax applies only to green energy producers, as fossil fuel producers are exempt. One immediate effect could be delays or even abandonment of new renewable energy investments when Romania needs new power facilities, the industry associations warned.
Social 
Over 70% of pre-university education units in Romania operate with physical attendance this week
During the period 15-19 November, over 70% of pre-university education units in Romania are to operate with physical attendance and almost 28% will operate entirely online due to the vaccination rate below 60%, the Ministry of Education announced on Friday evening. The full list of educational units, including the corresponding staff vaccination rates, has been available on edu.ro, since Saturday, 13 November.
MIPE signed RON 280 million contracts for schools and hospitals’ equipping
Between 1 and 12 November, the Managing Authority in charge of the Large Infrastructure Operational Program (AM POIM) ensured the signing of financing contracts for 37 beneficiaries – educational, healthcare and social assistance units - for the supply of equipment to prevent the spread of coronavirus. The total value of the contracts amounted to about RON 280 million, according to a press release issued by the Ministry of European Projects and Investments on Saturday.