Daily Newsletter - 2 February 2023


FIC (1)
Macroeconomic (3)
Financial (4)
Investment (3)
Legislative (2)
European News (1)
Social (2)
Prime Minister Nicolae Ciucă met with Foreign Investors Council representatives on Tuesday

Prime Minister Nicolae Ciucă met with representatives of the Foreign Investors Council at Victoria Palace on Tuesday, 31 January. Several topics related to the tax regime, the digitalization of administration, the reduction of bureaucracy, the stability and predictability of the fiscal framework and investment plans in Romania were approached during the dialog. The Prime Minister expressed his appreciation for foreign business people’s growing interest in Romania, confirmed by the "record" volume of direct investments made in 2022, which exceeded EUR 11.3 billion, the highest level of the past 30 years.

Gov’t priority: to support high added value investments, in digitization, innovation, development of new technologies

Romanian PM tells foreign investors that high-value-added projects are preferred

Nicolae Ciuca meets representatives of Foreign Investors’ Council

Romanian PM tells foreign investors that high-value-added projects are preferred

Ministry of Finance is to launch a new issue of TEZAUR government securities
On Friday, 3 February, the Ministry of Finance is to launch a new issue of TEZAUR government securities for the population exclusively, with one-, two- and thee-year maturities and annual interest rates of 7.20%, 7.50% and 8% respectively. The government bonds have a nominal value of RON 1 and are available in dematerialized form. The funds obtained by the Ministry of Finance as the issuer will be used to finance the budget deficit and refinance the public debt.
Number of insolvencies grew by 10% in 2022
Over 6,700 companies faced insolvency in 2022, 10% more than in 2021 (6,144). 67 of these are impact companies with more than 5,500 employees, over RON 1.5 billion assets and more than RON 170 million debts to the state budget, according to an analysis conducted by CITR. Impact companies to have faced insolvency in 2022 accounted for about 1% of the total number of companies in imminent insolvency, a similar percentage as the one recorded in 2021.
European Union has the third largest economy in the world
The European Union has the third largest economy in the world, accounting for one-sixth of global trade, worth USD 16 trillion (EUR 14.6 trillion), according to statistics. Altogether, the 27 member countries make up one internal market allowing free movement of goods, services, capital and people. The European Union’s economic strength is supported by three economic giants, per data from the International Monetary Fund. Put together, the GDPs of Germany (USD 4 trillion), France (USD 2.7 trillion) and Italy (USD 1.9 trillion) account for more than half of the EU’s entire economic output.
UniCredit Consumer Financing has launched an offer for consumer loan products
UniCredit Consumer Financing, part of the UniCredit financial group, has launched an offer for RON-denominated mortgage-free, fixed-rate consumer loan products, with gradually applied interest rate reductions, depending on the borrowed sums and the fulfilment of certain conditions. The fixed annual interest rate can thus reach a minimum of 7.99% for a Personal Loan with fixed interest for borrowed amounts between RON 120,000 and RON 150,000 provided the borrower cashes their income into an account opened with UniCredit Bank on the loan granting date and throughout the crediting period, a life insurance policy is attached to the loan and the loan in question is used to refinance a loan previously granted by another bank.
Intesa Sanpaolo organizes an international competition for high school students
Intesa Sanpaolo Group’s Financial Literacy International Network (FLITIN) has launched the first international edition dedicated to high school students aged 16-18 from Albania, Bosnia and Herzegovina, Croatia, Egypt, Hungary, Moldova, Romania and Serbia who want to get actively involved and take a new approach to their lifestyle, following the objectives of economic and environmental sustainability, according to information transmitted by bank representatives. The initiative, based on the S.A.V.E Sustainability, Action, Travel, Experience) content, a virtual tour, a journey towards a sustainable future by the Museum of Savings aims to bring young people closer to the themes of sustainability, circular economy, social inclusion and financial education.
Austrian group Raiffeisen Bank International reported EUR 3.6 billion profit for 2022
Raiffeisen Bank International (RBI), the Austrian group which Raiffeisen Bank Romania is also a part of, ended 2022 with a EUR 3.62 billion consolidated profit, more than double the result recorded in 2021, according to the group’s financial report. If gains obtained in Russia and Belarus, as well as the sale of the bank in Bulgaria, are excluded, the profit drops to EUR 982 million, up by 35% year-on-year.
NBR’s foreign exchange reserves grew by EUR 3.56 bn in January 2023, to EUR 50.2 bn
The National Bank of Romania (NBR)’s foreign exchange reserves grew by EUR 3.56 billion in January 2023 compared to December 2022, to EUR 50.2 billion, following EUR 4.75 billion inflows and EUR 1.18 billion outflows. The EUR 4.75 billion inflows represented changes in credit institutions’ foreign currency-denominated required reserves with the NBR, inflows into the Ministry of Finance’s accounts (including net nominal amounts of approximately USD 3,753 million from the Ministry of Finance issues of USD-denominated Eurobonds), inflows into the European Commission’s account and other.
Policolor - Orgachim group started works for the expansion of its paints factory in Bucharest
Policolor - Orgachim group has started works for the expansion of its paints factory in Bucharest, a project it will invest about EUR 2 million into, and expects a EUR 90 million turnover for 2023. Constructions company Masterbuild has been designated as general contractor for the expansion project and will build an additional 1,000 square meter space, apart from the existing 3,500 square meters, at the Policolor factory on Timișoara Boulevard in Bucharest.
Medicover Romania to open a hospital in Bucharest in 2023
Medicover, one of the biggest private healthcare service providers in Romania, is to open a hospital in Bucharest in the second half of 2023. Medicover’s investment in the new hospital amounts to EUR 20 million and involves transforming and returning to the community a 15,000 square meter office building located at 11 Șoseaua Fabricii de Glucoză, close to Bucharest-Ploieşti highway and to the two Medicover clinics in Pipera area.
TeraPlast group is preparing RON 102 million new investments in 2023
TeraPlast group is preparing new investments in 2023. Total investments will amount to RON 102 million, of which the most important projects target a new factory for the production of stretch wrap and a new photovoltaic plant. The group thus continues to diversify its activity areas and the geographical regions where it is developing businesses, in parallel with green investments aimed at sustainably increasing the group’s energy independence, based on governmental economic support programs.
Several new vaccines will be included into the list of subsidized medicines
On Tuesday, 1 February, the Government approved a normative act following which several vaccines that are not part of the national healthcare programs will be included into the list of subsidized medicines the insured benefit from. The emergency ordinance approved on Tuesday amends and completes the health reform law, as well as other normative acts on sick leave and health insurance benefits. The equivalent value of these medicines will be borne by the state budget, through transfers to the Single National Health Insurance Fund’s budget, via the Ministry of Health.
Government amended the Regulation on the Recovery of Wood from the Public Forest Fund
The Government approved, during the meeting on Tuesday, 31 January, upon the Environment, Waters and Forests Ministry’s proposal, the Decision amending and completing the Regulation on the Recovery of Wood from the Public Forest Fund approved through Government Decision 715/2017. The Decision regulates, among other things, the possibility of directly capitalizing on round and split working wood, in addition to firewood, without an auction and negotiations.
European News 
EU announces own green industry plan in global subsidy race
European Commission President Ursula von der Leyen presented the Green Deal Industrial Plan on Wednesday (1 February) in an effort by the EU to keep up with a worldwide race in subsidy schemes for green industries. As the EU aims for climate neutrality by 2050, key industries such as the manufacturing of wind turbines, solar panels, and battery-electric vehicles must be ready to supply the necessary technologies to decarbonise the economy. Countries around the world are therefore boosting subsidy schemes for green industries, von der Leyen said, mentioning Japan, India, the UK, Canada, and the US Inflation Reduction Act.
Families of unemployed and employees were most affected by price increases in 2022
Unemployed people’s families had a very difficult year in 2022, as the level of expenses grew by 27% for them in a single year. The situation of employees’ families was not necessarily better either, as wage increases failed to cover the price rises. Pensioner families were the only ones to have recorded a bigger increase in income than in expenses in 2022, but obviously their incomes remain nominally low.
Unemployment rate in Romania was 5.6% in December 2022
Unemployment rate in Romania was 5.6% in December 2022, up by 0.2% against the level recorded in November 2022 (5.4%), according to data published by the National Institute of Statistics (INS). By gender, the unemployment rate among men exceeded that of women by 0.7% (the respective values being 5.9% for men and 5.2% for women). Unemployed people aged 25-74 accounted for 73.6% of the total number of unemployed people estimated for December 2022.