More than 100,000 companies in Romania are currently at risk, amid the
significant increase in operating costs, the prolonged financial
blockage, the increasingly difficult access to financing and the
growing distrust in business relations, Sierra Quadrant experts warn in
an analysis on the state of Romanian economy at the beginning of
winter. The rise of fuel, energy and gas prices has further exacerbated
financial problems, primarily in the area of SMEs with lower
capitalization, which are vulnerable to the crisis. 73,365 companies
have thus faced insolvency, have suspended their activity or have been
dissolved or deregistered this year, 13,398 more than last year,
according to data from the Trade Register Office, which confirm Sierra
Quadrant’s estimates at the beginning of the year.
GPeC and the main players estimate that Romanian e-commerce will grow
by about 15% this year compared to 2020, and the entire sector will
thus reach approximately EUR 6.5 billion, compared to EUR 5.6 billion
at the end of last year. According to the aforementioned source, the
figure only refers to physical products sold via the Internet. However,
if digital services or the payment of utility bills are added, it would
reach about EUR 8 billion, according to PayU estimates. The e-commerce
sector recorded a 2-3 year advance amid the pandemic, and this
evolution brought a very large number of Romanians who ordered online
for the first time.
Construction works in the European Union fell in August, and Romania is
among the member states to have recorded the biggest declines in
construction works both month-on-month and at an annual rate, according
to data published by Eurostat on Tuesday, 19 October. According to
these data, construction works decreased by 1.8% month-on-month in the
EU, and were down by 1.3% in the euro area. Among the EU member states,
the biggest declines were recorded by Sweden (-10.5%), Hungary (-5.9%),
Germany (-3.1%) and Romania (-2.6%). In the case of Romania, the
decline from August comes after a 5% decrease in July.
CEC Bank, a top 10 credit institution controlled by the state, claims
to have granted more than 3,800 housing loans in the first nine months
of 2021, up by 34% against the similar period last year and to have
reached a portfolio of over 20,000 granted mortgage loans, worth over
RON 3 billion. The bank had provided RON 5.25 billion new financing in
H1/2021, following which its loans portfolio had grown to RON 24.4
billion. The biggest increase was recorded at the level of the housing
loans portfolio, of 17.5%, in the first six months of the year.
Banca Comercială Română and ROREG (Association of Regional Development
Agencies in Romania) have signed a collaboration protocol aimed at
promoting European financing opportunities, available to entrepreneurs,
through Regional Operational Programs. The Regional Development
Agencies will manage over EUR 11 billion during the period 2021-2027,
of which over EUR 3.5 billion will be available to companies.
Over RON 20 million from European funds will be invested to build from
scratch new buildings for the specialized outpatient clinics of the
County Emergency Hospital and of the TB Hospital in Galati. New and
modern medical spaces will thus be created, and the medical units will
be arranged and equipped with the necessary medical equipment.
Moreover, a new and modern building will be built to host the TB
Hospital’s Outpatient Clinic. The latter will be equipped with a
highly-performing CT scanner, which has already been purchased by
Galaţi County Council.
Meta Estate Trust, a holding company operating in the residential
sector, has invested EUR 500,000 in the first phase of The Lake Home
residential complex in Sibiu and intends to contribute to the next
phases of the project as it is being developed. The Lake Home, a
mixed-use real estate project, is being built by DMX Construction and
will include 494 apartments, an 89-apartment aparthotel, three
restaurants opening to Binder’s Lake, a cafe and 29 luxury
single-family homes. The project is being developed on a 50,500 square
meter area, of which 20,000 square meters are dedicated to green
Gersim Impex, the biggest local mobile phones distributor, has borrowed
RON 15.5 million from ING to finance its working capital. The funds
will be used for diversifying the company’s portfolio, mainly on the
mobile terminals segment. At the end of September 2021, ING opened
Gersim’s accounts and granted the credit facility for working capital,
available as an overdraft and the issuance of potential commitments.
On Monday, 18 October, the Romanian Senate adopted a new draft law
which proposes introducing financial education and legal education
classes into the school curriculum starting from the next school year.
The law will enter into force after it is promulgated by President
Klaus Iohannis and published in the Official Gazette of Romania.
According to the Vedem Just Association, the legislative proposal
submitted to Parliament at the beginning of the year had initially only
targeted the introduction of entrepreneurship and financial education
classes, and the Chamber of Deputies adopted it in this form on 7
The significant increase in energy prices is a major concern for
Romania, given its impact on citizens, businesses, and vulnerable
consumers, President Klaus Iohannis said in a videoconference with
European Council President Charles Michel and other EU leaders on
Monday, 18 October. President Iohannis underlined the need to quickly
identify solutions for the short term, as the energy crisis will
seriously affect all member states, including households and the
President Klaus Iohannis announced yesterday that a meeting with all
officials in charge would take place today, in order to decide upon
restrictive measures, the only ones that can reduce the spreading of
SARS-CoV-2 infection at this moment. Following yesterday’s record high
number of new Covid-19 cases and deaths, President Iohannis stated that
the fourth wave of the pandemic was more aggressive than anticipated
and admitted that preparations for this new wave had been inadequate,
amid a failed vaccination campaign.
The Ministry of Health announced yesterday that it had distributed a
new tranche of 8,570 vials of Remdesivir to 94 hospitals treating
patients infected with SARS-CoV-2 in Romania. The criteria for the
medicine’s distribution took into account the minimum number of
vials/treated patient and the number of confirmed patients in hospital
departments and intensive care units who require administration.