Turnover from market services provided to the population grew by 26.7%
as a gross series and by 30.9% as a seasonally and working-day adjusted
series in the first nine months of 2022, according to data published by
the National Institute of Statistics (INS) on Wednesday. Moreover,
turnover from wholesale and retail trade, maintenance and repair of
motor vehicles and motorcycles increased by 4.6% as a gross series in
January-September 2022, compared to the similar interval of 2021,
influenced by the rise in turnover in: trade in motorcycles and
associated parts and accessories; motorcycles maintenance and repair
services (+6.6%), trade in motor vehicle parts and accessories (+6.4%),
trade in motor vehicles (+4.4%) and motor vehicles maintenance and
repair services (+1.2%).
Finance Minister Adrian Câciu announced, after Wednesday’s government
meeting, that the Executive could approve this year’s second budget
adjustment, in which the consolidated deficit would decrease to 5.74%
of GDP, on Thursday, 17 November. He explained that the balance of
state budget revenues would decrease by RON 1.941 billion for 2022,
which would be mainly reflected in profit tax, which would grow by RON
1.6 billion, following the increase in revenues from profit taxes
compared to the same period of 2021.
RON 5.616 billion was spent on research and development in Romania in
2021. Research and development expenditure accounted for 0.48% of GDP,
of which 0.29% for the private sector and 0.19% for the public sector,
according to data published by the National Institute of Statistics
(INS) on Wednesday, 16 November. Funds provided by businesses had the
highest share, i.e. 51.8%, followed by public funds (including general
university public funds), i.e. 31.6%.
Omniasig, Asirom and BCR Asigurări de Viață, the companies owned by the
Austrian Vienna Insurance Group (VIG), ended the first nine months of
2022 with EUR 570.9 million total gross written premiums, up by 38%
year-on-year, according to a report published by VIG. As to the three
companies’ contribution to VIG Group’s gross profit, the three insurers
recorded a gross profit of EUR 20.4 million in the first nine months of
2022, more than 10 times the result reported for the first nine months
of 2021. As a result, the Romanian market contributed 5% to VIG’s
profit.
The balance of loans granted by UniCredit Bank in Romania stood at EUR
7.3 billion at the end of the first 9 months of 2022, up by 13.7%
year-on-year, according to the financial results announced by the
Italian group in Milan. The revenues of the Romanian bank with Italian
capital also grew following the advance of lending, but also after
interest rates entered an upward trend. UniCredit Bank obtained EUR 244
million net interest income in the first nine months of 2022, up by 20%
year-on-year, this being the main source of revenues for the bank. Fee
income also increased by nearly 9%, to EUR 64 million at the end of
January-September 2022.
Patria Bank (stock exchange symbol PBK), a credit institution owned by
the Emerging Europe Accession Fund (EEAF) investment fund, has reported
a RON 14.8 million net profit for the first nine months of this year,
up by 106.4% year-on-year, a result boosted by "the increase in
operating income coupled with a prudent evolution of risk costs,"
according to the bank’s financial report. Moreover, the institution
recorded a net banking income of RON 138.6 million, up 12.2%
year-on-year.
The Romanian national railway services operator CFR Călători and Alpha
Bank Romania have signed long-term framework agreements to make the
ticket payment process more accessible and simpler with the help of
electronic means. Following these agreements, Alpha Bank is to provide
the e-commerce service allowing the online purchase of train tickets,
as well as the Alpha PhonePOS application that will allow travelers to
pay for train tickets by bank card while on the train.
Agricola Arimpex, a producer of aronia juices under the Zemo’s brand,
has recently started juice production in a new factory following EUR
850,000 investments with the help of European funds. The company also
has a development plan which includes brand promotion, portfolio
diversification and collaboration with other farmers, according to
Carina Ardelean, a shareholder of Agricola Arimpex.
DP World, one of the world’s largest port operators, is developing a
RORO (Roll-On, Roll-Off) terminal and a project cargo terminal in the
port of Constanta. The total value of the investment amounts to USD 75
million (own funds and European grants). Thirty jobs will be created in
the first phase of the investment, and another 50 people will be
employed within the second phase. The company currently has about 600
employees in Romania and has invested a total of USD 120 million over
the past 18 years.
Comes, a company headquartered in Săvinești Commune, Neamt County,
which supplies large pressure machinery and spare parts for the
chemical, petrochemical, oil and gas industries, is to invest EUR 5
million in the construction of a new unit, an expansion that will
increase its production capacity. Construction works will start in
early 2023 and the new unit must be finalized by September.
Holcim Romania is developing a photovoltaic park with bifacial panels,
within a project co-financed from Norwegian funds. The project will
result in a photovoltaic system with a total installed capacity of
0.999 MWe, a reduction of greenhouse gas emissions by 383 tons CO2/year
and an average annual renewable energy production of 1,254 MWh. The
value of the investment amounts to EUR 357,400 and the project is being
carried out in partnership with International Development Norway AS
(IDN) Norway.
The Government spokesman announced on Wednesday that the Government had
approved a draft law on some measures to render road traffic monitoring
more efficient, which included 1,000 speed check systems, 300 mobile
speed cameras and 500 fixed speed cameras that will be part of an
integrated road traffic monitoring system on public roads in Romania.
The new integrated monitoring system will be called e-SIGUR.
The draft law introducing a much more advantageous taxation of
privately administered (Pillar 2), voluntary (Pillar 3) and
occupational pensions, in cases where the amounts are paid to
beneficiaries or their heirs as a lump sum or in instalments, has been
promulgated by President Iohannis. The measure, previously reported by
Profit.ro, should encourage the population to save through voluntary
pensions, given that Pillar 2 pensions - although this facility applies
to them as well - are mandatory. The provisions of the law will enter
into force on 1 January 2024, according to the draft law adopted by
Parliament.
On Wednesday, 16 November, the Romanian government approved a
Government Decision amending Government Decision 1767/2004 on the
organization and functioning of the driving license and vehicle
registration community public services. The new regulations aim to
simplify the process of organizing contests to fill vacant positions
for police officers and contractual staff within the aforementioned
community public services.
Government adopted a Government Decision on the maximum number of
positions for the High Court of Cassation and Justice on Wednesday, 16
November. As a result, the Executive approved the increase in the
staffing plan for the aforementioned institution by adding 15
positions, from 579 to 594 positions, as it follows - eight assistant
magistrate positions, four court clerk positions, two IT specialist
positions and one contractual personnel position.
The European Commission has repeated its call for EU governments to
admit Bulgaria, Romania, and Croatia to the bloc’s Schengen area, which
allows passport-free movement, at a vote in December. Speaking at a
press conference on Wednesday (16 November), EU Home Affairs
Commissioner Ylva Johannsson said that following recent fact-finding
missions by EU agencies, it was clear that "these three nations deserve
to feel fully European".
The Government has approved an increase in the budget for the
implementation of Romania’s Schools Program for the current school year
from RON 562 million to RON 578.2 million following the rise in costs
throughout the production chain and Government representatives’
consultations with associations in the dairy industry. The financial
resource approved for the distribution of milk in schools has been
increased. The daily value limit for drinking milk and dairy products,
without added milk powder, for student has thus grown from RON 0.99 to
RON 1.11, reflecting the effects of rising costs much closer to
reality, based on calculations made by the Research Institute for
Agricultural Economics and Rural Development, government spokesperson
Dan Cărbunaru said on Wednesday, during a press conference at Victoria
Palace.
On Wednesday, the Government adopted a Government decision approving
the methodology for the settlement of psychological and psychotherapy
intervention services and the enrolment in the National Support Program
for Children, amid the COVID-19 pandemic - "Out of care for children".
As a result, the settlement is made for a RON 120 cost for a 50-minute
session. The maximum number of sessions is ten, and the sessions must
be held in a maximum period of 120 days. This interval may be extended
by another 120 days if the child, for health reasons proven by medical
documents, cannot complete all the sessions.
The National Trade Union Bloc (BNS) supports the increase in the gross
minimum wage to RON 3,000 for 2023 and the review of income taxes by
adjusting personal deductions for all salary incomes up to RON 5,500,
which would help avoid excessive compression of the grid in the minimum
wage area. BNS also proposes maintaining the calculation base for
social security contributions, particularly for pensions, at the
minimum wage. Trade unionists believe that an approach such as the one
proposed by the Government, especially in the case of pensions, means
that employees will pay the costs in the future by obtaining lower
pensions.