News

Daily Newsletter - 16 June 2022

Summary

Macroeconomic (3)
Financial (3)
Investment (3)
Legislative (2)
European News (1)
Social (2)
Macroeconomic 
PSD has proposed several tax measures within the ruling coalition
The Social Democratic Party (PSD) believes that the reform of the tax system in Romania mainly aims to reduce social inequalities and ensure social solidarity among taxpayers. From PSD’s point of view, the tax burden must be fairly distributed across society. Two essential conditions must thus be simultaneously met: oversized incomes must be over-taxed and low incomes must benefit from lower taxes, according to a press release issued by the party.
Total industry turnover grew by 24.8% in the first four months of 2022
Total industry turnover (domestic and external markets) grew by 24.8% in nominal terms in the first four months of the year compared to the same period of 2021, according to data published by the National Institute of Statistics (INS) on Wednesday. Turnover in industry decreased by 10.6% in nominal terms in April 2022, compared to the previous month, as a result of declines recorded in the mining industry (-12.8%) and in the manufacturing industry (-10.5%). By major industrial group, decreases were recorded in the durable goods industry (-19.2%), the capital goods industry (-12.6%), the energy industry (-12.4%), the intermediate goods industry (-11.9%) and in the non-durable goods industry (-1.2%).
New orders in the manufacturing industry grew by 20% in the first four months of 2022
New orders in the manufacturing industry increased by 20% in nominal terms in the first four months of 2022 compared to the same period of last year, according to data published by the National Institute of Statistics (INS) on Wednesday. Total new orders in the manufacturing industry decreased by 10.7% in nominal terms in April 2022, compared to the previous month, as a result of declines recorded in the durable goods industry (-29.4%), the intermediate goods industry (-13.4%), the capital goods industry (-8.1%) and the non-durable goods industry (-4.9%).
Financial 
BCR to list a new issue of RON-denominated green senior non-preferred bonds on BSE
BCR has launched a new green senior non-preferred bonds issue, worth RON 702 million, with five-year maturity and 9.079% interest rate. The issue represents BCR’s second green bonds transaction and will be listed on Bucharest Stock Exchange. The bonds received a BBB+ long-term rating from Fitch. The bank has issued RON 3.75 billion bonds in the past three years and is one of the main active issuers on Bucharest Stock Exchange.
The top of the ten biggest banks in Romania in 2021 shows a strong rise in assets
The top of the ten biggest banks in Romania in 2021 shows a strong rise in the assets of Romanian banks, amid an increase in lending. Banca Transilvania (first place in the top), CEC Bank (6th place) and EximBank (10th place) recorded the biggest annual increases in assets, of over 20%, last year. Banca Transilvania, which had become the leader of the Romanian banking market in 2018, for the first time, stood out from the rest of the banks in 2021, having reached RON 125 billion assets, up by 21% against 2020. The rise in assets in recent years was the result of both growing lending and acquisitions. The balance of net loans granted by the bank from Cluj recorded an almost 15% advance in 2021 compared to 2020, to about RON 46.3 billion. The volume of loans at the level of the entire Banca Transilvania Group stood at RON 50.2 billion, up by 19%.
Groupama launches ÎntreabăMedic, a new free service included in travel insurance
Groupama, one of the leaders of the Romanian insurance market, has launched the ÎntreabăMedic telemedicine service, which will be included free of charge in travel insurance contracts. The company’s clients will benefit from medical advice and examinations provided by doctors via WhatsApp, Facebook Messenger, Telegram or SMS, with the help of a medical chat service that combines artificial intelligence and human interaction.
Investment 
Braicoop agricultural cooperative in Brăila is investing in drip irrigation systems in 2022
Braicoop agricultural cooperative in Brăila, formed of more than 50 farmers who grow grains on an area of about 20,000 hectares, aims to reach an irrigable area of almost 5,000 hectares and is investing in drip irrigation systems in 2022. Farmers associated in Water User Organisations (WUAs) could obtain up to EUR 1 million EU funds in 2020 to set up irrigation systems. In the case of the aforementioned cooperative, members also used their own funds or bank financing.
TMK Hydroenergy Power started works on a new hydropower plant in Caras Severin County
TMK Hydroenergy Power, part of the CEZ group, has started works on a new hydropower plant in Caras Severin County, on Bârzava River, a EUR 700,000 investment that will ensure green energy production amounting to about 2,500 MWh per year. The project is carried out during the period 01.09.2020-31.12.2022, and CEZ has accessed non-reimbursable financing for about 44.7% (EUR 300,000) of the total value of the investment through the Energy in Romania Program, via the EEA and Norwegian Financial Mechanisms for 2014-2021.
Early Game Ventures has announced a new investment round, of EUR 500,000, in Meetgeek.ai
Early Game Ventures (earlygame.vc) has announced a new investment round, of EUR 500,000, in Meetgeek.ai (meetgeek.ai), a tech start-up building an AI assistant that helps teams take control of their meetings, according to a press release. The robot automatically records, transcribes and summarizes conversations between participants. In doing so, it saves time by highlighting key moments in meetings, such as conclusions, concerns expressed, tasks taken on by participants, and many other useful pieces of information during meetings.
Legislative 
Chamber of Deputies adopted draft law amending the Patients’ Rights Law
On Wednesday, 15 June, the Chamber of Deputies adopted a draft law amending the Patients’ Rights Law, according to which, when concluding insurance contracts, if the insurance distributor asks the cancer survivor for information and documents related to their oncological condition, the latter has the right not to provide them if more than seven years have passed since the conclusion of the oncological protocol. The draft law also stipulates that insurance distributors who fail to comply with this right of the patients can be held legally liable, in accordance with the legal provisions in force.
The Volunteering Law has been amended
On Wednesday 15 June, the Chamber of Deputies adopted a draft law according to which people who choose to participate in voluntary activities can carry out the latter within social integration enterprises as well. The draft law amends the Volunteering Law. According to the explanatory memorandum, a social integration enterprise is a social enterprise whose aim is to combat exclusion, discrimination and unemployment through the social and occupational integration of underprivileged people. At least 30% of the employees of such enterprises are vulnerable persons, and these employees’ cumulative working time represents at least 30% of the total working time of all employees.
European News 
Russia is NATO’s main threat, according to President Klaus Iohannis
In its future Strategic Concept, NATO needs to depict the new security situation as adequately and realistically as possible, starting with identifying Russia as NATO’s main threat, President Klaus Iohannis said on Tuesday. The Strategic Concept needs to prioritize collective defense and strengthen the Alliance at all levels so that NATO would be able to meet all the challenges of the present and the future, Iohannis said during a meeting in The Hague in preparation for the upcoming NATO Summit in Madrid. The meeting was attended by the heads of state and government of Belgium, Denmark, Latvia, the Netherlands, Poland, Portugal and Romania.
Social 
Consumers around the world expect to spend more on food products
Consumers around the world are faced with growing prices. More than 75% of respondents to a PwC survey expect similar or higher spending over the next six months compared to the current level of expenditure for most categories. Moreover, 47% of consumers estimate that they will spend more on food products, and many expect to cut spending on luxury/premium goods (37% of respondents), dining out (34%), arts, culture and sports (30%) and fashion (25%).
Customer satisfaction in Romania is at alarmingly low levels
Studies conducted in the past few years on customer satisfaction with the services provided by medical clinics, pharmacies, gas stations, banks or stores in Romania show an extremely low level of satisfaction. According to the specialists from "Din Grijă pentru Client" Association and to the marketing and market research experts from VBS Business Solutions, customers tend to place growing focus on customer experience. This element overshadows the price and sometimes even the product or service itself.