News

Daily Newsletter - 28 September 2022

Summary

FIC (1)
Macroeconomic (3)
Financial (4)
Investment (4)
Legislative (3)
European News (1)
Social (2)
FIC 
Foreign Investors Council Vice-President Ramona Jurubiță discussed at ZF.live program about Va Urma project
Ramona Jurubiță, Vice-president of the Foreign Investors Council (FIC) and Laurian Lungu, macroeconomic analysis coordinator discussed at Ziarul Financiar.live program on Monday, 26 September about Va Urma (www.vaurma.ro), a project that represents an economic development model for the next 20 years that includes several scenarios. Va Urma emphasises the multiple advantages of combining private (foreign and domestic) and public investments together with measures aiming to stimulate digitisation and innovation. The key elements of the programme comprise: improving institutional capacity and the efficiency of state-owned companies; protecting human capital by facilitating access to jobs, education and health; transforming the energy mix in the directions established by the Green Deal at European level and the development of energy infrastructure.
Macroeconomic 
Euro area companies continued to borrow heavily from banks
Euro zone companies extended their borrowing binge in August, taking on bank loans at the fastest pace since 2008 despite rising interest rates, according to a study published by the European Central Bank (ECB). Bank lending to companies rose by 8.7% in August from 7.6% in July, while lending to households grew at a steady 4.5%. The ECB started raising interest rates in July to try to cool record-high inflation, but so far this has not discouraged borrowing from banks, which have been slower than financial markets in raising their lending rates.
General consolidated budget revenues grew by 22% in the first eight months of 2022
Romanian Prime Minister Nicolae Ciucă indicated, in a Facebook post that general consolidated budget revenues had grown by 22% in the first eight months of 2022, compared to the similar period of 2021, while investments had increased by 9.6%. Nicolae Ciucă also indicated that the government’s aim was for all the figures to be reflected in a higher level of living and the modernization of key areas. He also said he wanted Romania to grow and become more prosperous.
Bucharest’s contribution to national GDP fell by 2.4% from 2019 to 2021
Bucharest’s contribution to national GDP fell by 2.4% from 2019 to 2021, to 34.6%, with estimated losses to tax revenues of RON 17.2 billion (EUR 3.45 billion) by 2026, according to an impact study regarding the building permits deadlock in Bucharest. The analysis indicates that total losses in terms of value added in economy for 2022-2026 amount to about RON 52 billion (EUR 10.4 billion).
Financial 
Metropolitan Life announced over RON 298.6 million revenues for H1/2022
On Tuesday, 27 September, Metropolitan Life, one of the biggest life and private pension insurers in Romania, announced over RON 298.6 million revenues for H1/2022, up by 17% year-on-year. Moreover, the insurance benefits paid in the first six months of 2022 amounted to RON 88,708,973, up by 20% against the similar period of 2021, when they had stood at RON 74,224,336.
Raiffeisen Bank provides an online form for clients with mortgage loans
Raiffeisen Bank clients with ongoing mortgage loans can request documents related to the loans in question by filling in an online form. Client can thus obtain certain types of approvals such as to rent a mortgaged residence, to conclude a bailment agreement, to sell the mortgaged property, etc. without going to the bank. Requests can be submitted on the bank’s website directly, in the section Individuals / Support / Request agreements for ongoing loans ("Persoane Fizice / În sprijinul tau/Solicitare acorduri privind creditele în derulare").
Insurance market reached RON 8.76 billion underwritten premiums at the end of H/2022
The insurance market reached RON 8.76 billion underwritten premiums at the end of the first six months of 2022, up by 37% year-on-year, according to the Financial Supervisory Authority (FSA)’s report on the evolution of the insurance market in H1/2022. Apart from the total underwriting recorded by companies on the local market, there is also a volume of brokered premiums of RON 730 million, representing companies selling in Romania based on the Freedom of Service (FOS) and Freedom of Establishment (FOE) systems.
Alpha Bank Romania is a partner bank for Women in Management 2022 - 2027 program
Alpha Bank Romania has been selected as a partner bank for the implementation of the Women in Management 2022 - 2027 program, carried out together with the Ministry of Entrepreneurship and Tourism. The program, aimed at improving the economic performance of enterprises run by women, provides for the granting of maximum RON 200,000 non-reimbursable financial aid to SMEs where at least one of the shareholders/associates is a woman, who holds at least 50% of the company’s shares. In Romania, only 31% of management positions are held by women, which is below the European average. Women shareholders/associates in Romanian companies accounted for more than 37% of all shareholders/associates at the end of 2021.
Investment 
New student complex to be built in Ghiroda, Timis, following RON 121 million investment
The Ministry of Development, Public Works and Administration has allocated RON 121 million (EUR 24.5 million) for the construction of a student complex in Ghiroda locality, Timiş County, for "Victor Babes" University of Medicine and Pharmacy in Timişoara. The investment project involves the construction of a student dormitory with 100 beds, which will have a swimming pool, a rehabilitation and physiotherapy center and a sports field with a night-time lighting system.
FAN Courier will perform several investments in the following period
Cornel Morcov, Chief Commercial Officer at FAN Courier, has stated that the courier services company is preparing several investments for the following period. The company’s investments will focus on several directions, from consolidating a network of lockers to opening new centers. The company will thus focus on the out-of-home delivery infrastructure through lockers. Cornel Morcov has also indicated that the growth of e-commerce has boosted the development of the courier services industry, pushing companies operating in this sector towards a business model focusing on continuous investments in infrastructure and adaptation to consumers’ new delivery habits.
Provita Medical Group expands outside Bucharest
Provita Medical Group, which currently includes five clinics and a laboratory in Bucharest, is expanding. The first clinic outside Bucharest will be opened in Suceava, following a EUR 2.5 million investment. Provita group is soon to change its name to Nord. The rebranding process will take several months and the first unit outside the capital city of Romania will be launched under the new umbrella.
The new Radisson Blu Aurum hotel in Braşov will be inaugurated on 16 October
The new five-star Radisson Blu Aurum hotel in Braşov will be inaugurated on 16 October after a EUR 16.3 million investment, almost EUR 3 million more than initially estimated. The investment was financed through EximBank by RaRa Group, the owners and developers of the hotel. The unit located in the center of the city has 110 rooms, an event hall with a capacity of 150 people, a restaurant with a terrace, skybar, swimming pool, SPA center, electric vehicle charging stations and a car park.
Legislative 
Draft law on combating human trafficking received a favorable report in Senate
A draft law aimed at eliminating the contraventions applied to victims of human trafficking and at facilitating the issuing of identity documents for them, drawn up by Save Romania Union (USR), has received a favorable opinion in the Senate’s Legal Affairs Committee, according to USR MP Iulian Lorincz. The draft law thus stipulates that these documents must be issued within an urgency system, within maximum 15 days (down from 30 days), as well as the possibility for the declared address to be a lawyer’s address or the headquarters of a non-governmental organization. The victim would thus no longer have to travel to the places of origin where traffickers’ networks may operate.
Persons sentenced to at least 1 year in prison may only work as lawyers after rehabilitation
Parliament has decided, through a final vote in the Chamber of Deputies, that persons sentenced by final court decision to one or more years in prison for having intentionally committed a crime are unfit to be lawyers. The draft law has been adopted in this form by the ruling majority in order to rectify the law on the organization and practice of the legal profession, following several decisions of the Constitutional Court of Romania (CCR).
Senate voted on amendments to Government Emergency Ordinance on energy
During the plenary session on Tuesday, 27 September, the Senate voted on the draft law approving Government Emergency Ordinance (OUG) 119/2022 amending and completing Government Emergency Ordinance 27/2022 on measures applicable to end clients on the electricity and natural gas market for the period from 1 April 2022 - 31 March 2023, as well as amending and completing certain normative acts in the energy sector. There were 87 votes in favor and 35 abstentions. The draft law will now be sent to the Chamber of Deputies, the decision-making body.
European News 
Group of countries to push EU for gas price cap
A group of European Union countries want to push Brussels to produce plans this week for a bloc-wide cap on the price of gas, according to a draft letter seen by Reuters. The EU proposed a package of emergency measures to tackle soaring energy prices earlier this month, but has steered clear of a gas price cap, an idea which has split the bloc’s 27 member states. Countries in favor plan to step up pressure on Brussels, with a letter asking the European Commission to make proposals on a gas price cap for discussion at a meeting of EU energy ministers on Friday, followed by a legislative proposal as soon as possible.
Social 
More than half of young people feel the need for financial education
More than half of young people feel the need for financial education and to develop their social and emotion management skills, according to the Insights PulseZ national study, which has reached its third edition in 2022. Girls, compared to boys, are significantly more affected by barriers such as lack of motivation (68% vs. 58% boys), fatigue (55% vs. 45%), fluctuating emotional states (53% vs. 37%) and anxiety (50% vs. 35%). Moreover, the top two desires of young people are the ability to be more self-confident (68%) and to manage their time more effectively (60%).
National unemployment rate was 2.56% at the end of August
National unemployment rate was 2.56% at the end of August, similar to the one from the previous month and 0.37% lower than in August 2021, according to a press release issued by the National Employment Agency (ANOFM). The total number of unemployed at the end of August 2022 was 224,044 people, 564 more than at the end of the previous month.