Daily Newsletter - 26 September 2022


FIC (1)
Macroeconomic (4)
Financial (4)
Investment (3)
Legislative (3)
European News (1)
Social (2)
Presentation of the Va Urma Project to be streamed by Ziarul Financiar on its online platform
Ramona Jurubiță, Vice-president of the Foreign Investors Council (FIC) and Laurian Lungu, macroeconomic analysis coordinator will be the guests of the program’s edition of the Journalist Sorin Pâslaru during the Ziarul program on Monday, 26 September at 12:00. The main topics discussed will be Va Urma project ( and about solutions that foreign investors have to reduce the gap between Romania and the West.
Two in three Romanians monitor their budget and keep track of incomes and expenditure
Romanians have started paying more attention to the expenses that can affect the family budget, as for 25.5% of them, 40-60% of their income is currently allocated for home-related expenses, according to a survey conducted by CEC Bank in partnership with the bank comparator The survey also indicates that 66.43% of Romanians usually monitor their budget on a monthly basis, up by about 3% compared to the first quarter of 2022. About 75% of the elderly (over 55) say they monitor their budget on a regular basis, while only 55% of people under 25 say they have this habit.
European Central Bank is studying ways of cutting a subsidy to banks
The European Central Bank is studying ways of cutting a subsidy to banks that stands to cost it tens of billions of euros in interest, four sources who wished to remain anonymous told Reuters, a decision that will most likely prompt pushback from lenders. To fight runaway inflation, the ECB has raised the rate it pays on the EUR 4,600 billion banks’ reserves that exceed requirements, from -0.5% to 0.75% in less than two months.
Average monthly labor cost grew to RON 5,802/employee in 2021
Employers spent, on average, RON 5,802/employee per month in 2021, up by 7.3% year-on-year, according to the National Institute of Statistics (INS). The average monthly cost grew in most economic activities compared to the previous year. The biggest increases were recorded in hotels and restaurants (+15.5%), entertainment, cultural and recreational activities (+12.9%), manufacturing industry (+11%), electrical and thermal power, gas, hot water and air conditioning production and supply (+10.6%), other service activities (+10.2%), agriculture, forestry and fishing (+10.1%).
The yields at which Romania borrows local currency have grown
The yields at which Romania borrows local currency grew across all maturities following US Federal Reserve’s decision to raise the key rate. The Ministry of Finance had a weak government securities auction, with low demand from investors. The US Federal Reserve raised its key rate by 75 basis points, to 3.25%. The market had expected this increase, but Fed suggested that further, higher interest rate hikes would follow at the end of 2022 and in 2023, and adopted a tighter rhetoric on inflation, even at the cost of an economic slowdown or even a recession.
UniCredit Consumer Financing offers 100% mobile consumer loans
UniCredit Consumer Financing, part of UniCredit financial group, allows clients to access consumer loans from their mobile phones directly, by accessing UniCredit Bank’s Mobile Banking app. Financing can be up to RON 100,000 and is available with a standard, fixed interest rate of 12.99% per year. This can be reduced up to 8.99% per year, depending on clients’ options. Clients can benefit from a 2% cut in interest rate (compared to the standard interest rate of 12.99%/year) if they choose to cash their monthly incomes into current accounts opened with UniCredit Bank throughout the duration of the loan contract and from an additional reduction of 2% (compared to the standard interest rate of 12.99%/year) if clients opt for life insurance attached to the loan.
Private lending’s annual growth rate decreased to 15.9% in August
Private lending grew by 15.9% in August 2022 compared to the same period in 2021, to a total balance of RON 359 billion, after RON-denominated loans increased by 16.8% and foreign currency ones, expressed in RON, were up 13.8%, according to data published by the NBR on Friday. The growth rate had been 16.8% in July, and 17.5% in June, according to data aggregated by ZF. In real terms, the balance of loans rose by 0.5% year-on-year in August 2022, following a 1.3% increase in the RON-denominated component and a 15.6% advance of the foreign currency one, if the indicator is expressed in euros.
Nicolas Naftalski has been appointed member of Groupama Asigurări’s Board of Directors
Nicolas Maurice Georges Naftalski has received the Financial Supervisory Authority (ASF)’s approval to become a member of Groupama Asigurări’s Board of Directors, according to the information provided by ASF. He began his career with Groupama in 2007 as the group’s internal auditor in France. After filling this position for two and a half years, Nicolas Naftalski held various offices within Groupama in Turkey, having become a Chief Financial Officer (CFO) in 2013-2014. He is currently the general manager of Groupama Loire Bretagne. He has an MBA from HEC Paris and an MBA from New York University. Groupama ended Q1/2022 with RON 754.1 million gross underwritten premiums, an almost triple volume compared to Q1/2021.
Raiffeisen Bank to grant RON 500,000 financing to ten non-formal education projects
Raiffeisen Bank has announced that it will finance ten non-formal education projects with a total non-reimbursable amount of RON 500,000, within the Raiffeisen Communities grants competition for public schools in Romania and NGOs. The selected projects include a biodiversity and sustainability education program, a vocational training project for institutionalized young people in Gorj County and a diversity and inclusion educational project for high school students, according to data transmitted by the institution’s representatives on Friday.
INVL Renewable Energy Fund I buys six solar farm projects in Romania
INVL Renewable Energy Fund I, administered by INVL Asset Management and which invests in renewable energy projects, continues to actively invest in Romania. It has signed two contracts for the acquisition of six solar farm projects with a total capacity of 102.7 megawatts (MW), according to a press release. The cited source also indicates that these transactions take INVL Renewable Energy Fund I’s portfolio of projects in Romania to 268.7 MW. All solar farm projects in the Fund’s portfolio have already been approved for connection to the grid. The Fund’s total investment potential in Romania, including solar projects under development as of June this year, will exceed EUR 200 million. All solar farms are expected to start producing electricity in 2024 and 2025.
A Polivalenta Hall with over 11,000 seats will be built in Brasov following an investment
The company M.I.S-Grup from Bistriţa-Năsăud, controlled by entrepreneur Emil Iugan, in association with Electrogrup Cluj, Energosteel ART Braşov and Yenigun Insaat Sanayi Ve Ticaret Anonim Sirketi from Turkey, have started construction works on the Polivalentă Hall with over 11,000 seats in Braşov, a RON 356.7 million (EUR 72 million) investment. The works execution period is 36 months and the investment is supported by the National Investments Company (CNI) and by Brasov City Hall (3.5% of the costs).
McDonald’s to reopen its restaurant in Tomis Mall in Constanta
Premier Restaurants Romania, the operator of McDonald’s restaurants chain in Romania, is to reopen its restaurant in Tomis Mall shopping center in Constanta, following over RON 4 million modernization and digitalization investments, according to a press release. Customers will have new facilities and benefits thanks to the digital system, which allows orders to be placed via digital kiosks.
Draft law on drug testing through unannounced verifications in schools was amended
The draft law initiated by two MPs from the Social Democratic Party (PSD) for drug testing through announced verifications in schools, which has sparked controversy in the public space, has been amended and is soon to be submitted to Parliament. According to the draft law, police officers will be allowed to carry out unannounced verifications in schools, high schools and universities, upon the request of the heads of educational units or the county school inspectorates and will be able to test pupils randomly using saliva tests.
Government adopted OUG through which Romania meets two more milestones in PNRR
On Friday, 23 September, the Government adopted an Emergency Ordinance (OUG) through which Romania meets two more milestones stipulated in the National Recovery and Resilience Plan (PNRR), namely the completion of a full dual education route from pre-university to university level and the regulation of early education services. The second milestone regulates complementary services such as playgrounds in places where there are not enough seats in nurseries or kindergartens, thus ensuring a unified, inclusive and good quality early education system and increasing access to early education services for children under six.
Amount granted for transport of pupils going to school in another locality to grow four times
Following the public debate on the draft Emergency Ordinance amending and completing National Education Law 1/2011, which ensures the legal framework for the payment/settlement of transport for pupils going to school in a locality other than their place of residence, which representatives of the National Council of Students and other students associations, representatives of the National Union of County Councils in Romania, of the Romanian Communes’ Association, of the Ombudsman and of civil society participated in, seven proposals for improving the draft normative act were agreed upon. As a result, the amount granted for the transport of pupils attending school in a locality other than their place of residence will grow four times.
European News 
Referendums in Ukrainian-occupied zones are "unacceptable", says Minister Aurescu
Russia’s decision to support the organization of so-called referendums to annex territories occupied by its army forces in Ukraine is completely unacceptable, Romanian Foreign Minister Bogdan Aurescu said during the UN Security Council meeting on Ukraine. The foreign minister reaffirmed Romania’s long-standing commitment to promoting respect for international law as a fundamental pillar of its foreign policy and said that it is inadmissible that the actions of a permanent member state of the Security Council, namely Russia, endanger the rule-based international order.
Single people or families who cannot afford to pay their heating bills can apply for state aid
Single people or families who cannot afford to pay their heating bills during the cold season can apply for state aid on 15 October. The provision of home heating aid is regulated by Law 226/2021 regarding vulnerable consumers. The state aid is granted in the form of a sum that people with low incomes can use to cover part of their heating costs in winter.
Romania ranks last in EU in terms of continued learning after completing one’s studies
Only 1% of Romanians aged 25-64 attended personal or professional development courses after leaving school, twice as few as Bulgarians and nine times below the European average, according to Eurostat data included in an analysis made by a company specializing in the provision of business software solutions. The cited source indicates that Romania ranks last in the European Union in terms of percentage of people who continue learning after completing their studies. At the other end of the classification, the European countries where there is major interest in continuing education are Sweden (28.6%), Switzerland (27.6%) and Finland (27.3%).