On Friday, Austrian group Erste, owner of BCR, published a report on
the evolution of economies in Central and Eastern European (CEE)
countries, estimating 2.8% GDP growth for Romania at the end of the
year, lower than the projection made before the outbreak of the
military conflict at the border, when the institution had forecast 3.2%
economic growth. Romania ranks third in the top of estimates regarding
economic evolution in CEE countries, after Hungary, which is expected
to record 4.8% GDP growth this year, and Austria, where a 3.5% advance
has been estimated.
The general consolidated budget deficit grew by 65% in March compared
to the first two months of the year, to nearly RON 16 billion (1.19% of
GDP). The increase in the budget deficit occurred amid a slowdown of
state budget revenues: while revenues rose 28% in the first two months,
the advance decreased to +21% at the end of the first three months of
the year. Moreover, expenditure accelerated, according to the budget
execution.
Euro area inflation reached a record high for the sixth month in a row,
raising new questions about how the European Central Bank will react.
Inflation in the 19-member region that uses the single currency
increased to 7.5% in April, according to Eurostat’s preliminary
estimates. In March, inflation had stood at 7.4%. On Thursday, European
Central Bank (ECB) Vice-President Luis de Guindos tried to reassure
lawmakers about the rising prices, saying the euro area was close to
reaching the peak of inflation.
Romania could face an unprecedented economic crisis, and the Government
has also confirmed the worst fears. According to Antena 3, the
Government announced a major economic crisis in an official report.
Romanians will no longer have money to buy many goods. To be more
exact, the cited source indicates that consumption will slow down
considerably by the end of the year. The report clearly shows that
those whose salaries or pensions had been increased were left with RON
0 more in their pockets because of inflation, which cancelled any
increase.
The Ministry of Finance (MF) plans to borrow RON 2.4 billion from
commercial banks in May 2022, of which RON 200 million through an issue
of discount treasury bills and RON 2.2 billion through eight issues of
government bonds. The sum of RON 330 million through additional
sessions of non-competitive bids corresponding to bond auctions can add
to all these. The total amount, of RON 2.73 billion, is RON 675 million
below the RON 3.405 billion planned in April and will be used to
refinance public debt and finance the state budget deficit. According
to the prospectus published in the Official Gazette of Romania, MF has
scheduled an auction on 12 May for an issue of discount treasury bills
worth RON 200 million, due on 29 March 2023.
Austrian group Erste, owner of BCR, ended the first quarter of 2022
with EUR 448.8 million net profit attributable to owners of the
parent-company, up by 26.3% against the EUR 335.1 million result
obtained in Q1/2021, while operating income grew by 11.3% to EUR 2.03
billion, according to Erste’s quarterly report published on Friday. The
group’s total assets stood at EUR 325.6 billion on 31 March 2022, up by
6.78% year-on-year and by 5.9% compared to 31 December 2021. Moreover,
the group’s operating profit increased by 10.4% compared to Q1/2021, to
EUR 801 million.
Banca Comercială Română (BCR) group, controlled by Erste Group, ended
Q1/2022 with a net profit of RON 477.5 million (EUR 96.5 million), up
by 12.5% against the RON 424.6 million (EUR 87.0 million) level
recorded in Q1/2021, thanks to an improved operating performance
supported by the constant advance of lending. The operating result grew
by 20.8%, to RON 588.5 million (EUR 119.0 million) in Q1/2022, from RON
487.1 million (EUR 99.8 million) in Q1/2021, amid the higher operating
income, partially compensated by higher operating expenses, according
to data from the quarterly report released by bank officials.
The total portfolio of net loans granted by Banca Comercială Română
(BCR) grew by 13.9% year-on-year on 31 March 2022, according to a press
release. BCR provided RON 2.4 billion new loans to individuals and
micro-enterprises in Q1 of 2022, up by 23% against the similar period
of 2021, amid a 39% increase in mortgage loans and a 35% advance of
consumer loans. The stock of RON-denominated mortgage loans rose by
17.5% year-on-year, while the stock of consumer loans (including credit
cards and overdrafts) was up 11.1% on 31 March 2022, compared to
Q1/2021.
IT Genetics, a company with 100% Romanian capital and a hardware and
software solutions suppliers for the DC/POS (data collection and point
of sale) market, has consolidated its position on the external market
by opening its third international office, this time in Madrid, Spain.
In Spain, the company sells a wide range of hardware and software
solutions required in digitalization processes, with extensive
applicability and proven efficiency in work processes in multiple
industries: retail, e-commerce, pharmaceutical, manufacturing,
logistics, transport or HoReCa. Moreover, IT Genetics Spain offers a
wide range of smart solutions that can be implemented in the work
processes of public institutions.
Romanians can invest in TEZAUR government securities, with one- and
three-year maturities and annual interest rates of 5.5% and 6.15%
starting from Monday, 2 May. The government bonds have a nominal value
of RON 1, according to the Ministry of Finance. Moreover, the
government securities issued under the Tezaur Program are transferable
and can be redeemed in advance. An investor can make one or several
subscriptions within an issue. Investors can cancel subscriptions
already made only during the subscription period, by submitting a
request.
Penny continues its expansion plan by opening two new stores in Sibiu
and Livezeni, the metropolitan area of Târgu Mureș, the company has
announced. The store in Sibiu, Sibiu County, has a sales area of 799.3
square meters. The store has 38 parking spaces, two of which are for
people with disabilities. Penny aims to reach 600 stores by 2029. As to
logistics, the company inaugurated its fourth warehouse in Filiași,
Dolj County, at the end of last year.
Last week, the draft law amending the legislation on the public pension
system by extending the list of localities where residents can retire
early without being penalized received the decisive vote of Deputies.
To be more exact, the draft law PL-x 111/2022 was adopted by the
Chamber of Deputies on 27 April 2022. Legislative proposal no. B545,
registered in the Senate on 25 November 2021, had been adopted by the
Senate on 7 March 2022.
The Romanian Senate has tacitly adopted a draft law that restricts the
rights and freedoms of LGBTI communities, submitted by seven MPs from
the Democratic Union of Hungarians in Romania (UDMR). The initiators of
the draft law claim that traditional values based on Christianity are
endangered. Specifically, the draft law tabled by UMDR provides for
"children’s protection against the dissemination by any means of
content concerning deviation from the sex established at birth or the
popularization of gender reassignment or homosexuality".
According to a joint order of the Minister of Environment, Waters and
Forests, of the Home Affairs Minister, of the Minister of Transport and
of the Deputy Prime Minister, license plates containing green letters
and numbers will be issued to zero CO2 emission vehicles (100% electric
or hydrogen fuel cell cars) exclusively. The new measures will enter
into force 60 days after the Order’s publishing in the Official Gazette
of Romania. In the case of already registered cars which meet the
criteria for the provision of "green license plates", they can be
exchanged, upon request, after the provisions of the normative act have
entered into force.
A cargo carrying over 71,000 tons of Ukrainian corn finished loading in
the Romanian Black Sea port of Constanta on Thursday (28 April), the
first since Russia invaded Ukraine on 24 February, the manager of port
operator Comvex said. With Ukraine’s sea ports blocked since the war
started more than two months ago, the world’s fourth-largest grain
exporter has been forced to send shipments by train via its western
border or through its small Danube river ports into Romania.
Romania is the European Union country with the lowest share of absences
from work, having recorded an only 2.5% rate in Q3/2021. Even if, when
compared to the European average, Romania has a low work absenteeism
rate, this means hundreds of thousands of euro losses for large
companies with more than 300 employees. For example, a large company
can lose over EUR 200,000 per year due to absences from work.
Labor Minister Marius Budăi has stated that after two years in which
the International Workers’ Day had been overshadowed by restrictions
imposed due to the pandemic, this year’s 1 May the holiday was marked
by the effects of the war in Ukraine. He has added that Romanians are
witnessing the destruction of tens of hundreds of thousands of jobs,
businesses and lives. The same as the pandemic crisis, the labor market
crisis caused by the war will affect the most vulnerable persons the
hardest, the Labor Minister has added.
Unemployment rate in Romania stood at 2.64% at the end of March, down
by 0.03% against the previous month and by 0.69% year-on-year,
according to a press release issued by the National Employment Agency
(ANOFM). The total number of unemployed at the end of March 2022
amounted to 230,288 people, 2,587 fewer than at the end of the previous
month. Of the total registered unemployed, 45,928 benefited from
unemployment benefits and 184,360 did not receive such benefits. The
number of unemployed with benefits decreased by 5,723 persons and the
number of unemployed without benefits increased by 3,136 persons
compared to the previous month.