Daily Newsletter - 3 September 2021


Macroeconomic (4)
Financial (2)
Investment (4)
Legislative (1)
European News (1)
Social (2)
Ministry of Finance borrowed RON 400 million from banks on Thursday, 2 September
The Ministry of Finance borrowed RON 400 million from banks on Thursday, 2 September, within a bonds issue due in 2026, at a 3.51% annual interest rate. Five primary dealers participated in the auction. The total value of demand stood at RON 770 million, of which non-competitive offers amounted to RON 30 million, and competitive ones totaled RON 740 million. The coupon rate was 3.25%, and the yield until maturity corresponding to the average award price is 3.51%.
Net minimum wage in economy could grow from RON 1,386 in 2021 to RON 1,530
The net minimum wage in economy will grow from RON 1,386 in 2021 to RON 1,530 per month (+10.4%) starting from 2022 if the government takes into consideration the National Trade Union Bloc’s minimum wage increase proposal. If "Cartel Alfa" Trade Union Confederation’s proposal is approved, then the net minimum wage will get to RON 1,524 per month in 2022, up by 10% compared to 2021.
Industrial producer prices grew by 14% in July
Industrial producer prices grew by 2.3% in July, compared to June 2021, and were up nearly 14% year-on-year, both on the domestic and on the external markets. The biggest increase was recorded in the energy sector, where prices exploded by 31% year-on-year, according to data from the National Institute of Statistics (INS). Related to the destination of production, prices on the local market were 15.3% above the level of July 2020, while those for the external market increased by 11.6%.
Economic sentiment in Romania slightly deteriorated in August
Economic sentiment in Romania slightly deteriorated in August, following an increase in July and another decrease in June, according to the European Sentiment Indicators (ESI) calculated by the European Commission. Business situation in Romania deteriorated by 1.3 ESI points, to 102.2 points, after having grown to 103.5 points in July. The ESI level is the lowest one of the past three months, but the value of the indicator shows a still solid yet slower growth pace of economic activity in Q3 of this year, compared to the spring months. ESI indicators are relevantly correlated with the level of economic activity. According to the International Monetary Fund (IMF)’s latest estimates, Romanian economy could grow by 6% in 2021.
Banca Transilvania has about 34,000 individual shareholders from Romania
Banca Transilvania (TLV), the most extensively traded share on the Romanian Stock Exchange and the largest credit institution in Romania, has about 34,000 individual shareholders from Romania, according to data in the bank’s half-year report. They hold 20% of the bank’s share capital, which represents an approximately RON 3 billion investment at the prices recorded at the end of June. As a comparison, the number of Romanians who had invested directly into the bank from Cluj stood at 32,700 in H1/2020, with a cumulated holding of 20.5% of the bank’s share capital.
ING Bank has launched interbank payments through AliasPay
ING Bank has launched interbank payments through AliasPay, allowing retail clients who have a current account at ING to transfer money to clients of other banks that also use the AliasPay service, using only the recipient’s phone numbers. AliasPay was developed by TRANSFOND and was launched in March 2021, and two other banks in Romania currently provide this service, namely Banca Transilvania and CEC Bank.
Cluj-Napoca is working on the metro’s Zonal Urban Plan
The largest constructors in Romania are looking forward to the tender for the construction of the infrastructure for the metro in Cluj-Napoca, a project estimated at about EUR 1.2 billion. The project’s Zonal Urban Plan is currently being drawn up and the technical-economic indicators are being established. These elements will subsequently be sent to the government, to be approved through a government decision. The total value of the investment project exceeds RON 5 billion. The duration of the investment project is 84 months.
Dedeman to open the 56th store of its network, in Blejoi, Prahova, on Friday, 3 September
Dedeman, the largest Romanian entrepreneurial business and the one that controls more than half of the local bricolage market, is to open the 56th store of its network, in Blejoi, Prahova County, on Friday, 3 September. The new Dedeman store, located near the city of Ploieşti, has created 190 jobs and involved a total investment of EUR 14 million. This sum includes the acquisition value of the over six-hectare land, the expenses incurred with the construction works, shelves, furniture and materials used in arranging the sales area, the offices area and the exterior area, the machinery and equipment necessary for carrying out the activity, as well as the value of the stockpile of products necessary for the store’s opening.
Ted’s Coffee chain will open three new units in Bucharest
Ted’s Coffee chain, founded by Vasi Andreica, will open three new units in Bucharest in September. The investment in a cafe ranges from EUR 50,000 to EUR 100,000. The network includes 44 cafes at national level, with 11 new units having been inaugurated in the past 15 months, some of them testing new concepts, such as the bank cafe, developed together with Techventures Bank.
Mega Image invested over EUR 1.3 million in "Romanian tastes from local producers" program
Mega Image supports local vegetable and fruit producers through the "Romanian tastes from local producers" program, for the eighth consecutive year. The program currently includes over 220 individual producers and cooperatives that grow vegetables and fruits in the traditional system exclusively, directly on the ground, on a total area of over 140 hectares of solariums and more than 300 hectares of orchards in the entire country, according to a press release. Mega Image’s investment in the program grew every year and exceeded EUR 1.3 million in 2020.
Cîţu government will adopt OUG approving "Anghel Saligny" investment program
During the government meeting on Friday, 3 September, Cîţu government will adopt the Government Emergency Ordinance (OUG) approving the "Anghel Saligny" investment program, according to a decision made during the National Standing Bureau’s meeting on Thursday. Moreover, the government will also adopt the budget adjustment on Tuesday, 7 September. The "Anghel Saligny" National Investment Program provides for RON 50 billion expenses over the next six years for small local projects managed by mayors.
European News 
EU announces it will need to engage with the Taliban
The European Union will need to engage with the Taliban but it will not rush into formally recognizing the Islamist militant group as the new rulers of Afghanistan, a senior European Union official said on Wednesday, 1 September. Gunnar Wiegand, the European Commission’s managing director for Asia and the Pacific, said that official relations with the Taliban would only come about if the group met specific conditions, including respect for human rights and unfettered access for aid workers.
Six pilot-schools to operate by the principles of "Educated Romania" program as of this autumn
The Ministry of Education announced on Thursday, 2 September, that six pilot-schools would operate by the principles of the "Educated Romania" program starting from this autumn. Students and teachers in the six pilot schools will thus benefit from a teaching-learning-evaluation process that is closer to each community’s needs and expectations and closer to the requirements of a modern, student-centered 21st century education system.
Candidates aged over 45 accounted for 40% of the total job applications submitted in August
Candidates over the age of 45 have become more active in their job search, given that 40% of the total volume of applications in August came from this age group, 10% more than in July, according to data from the BestJobs platform. Half of these applications were submitted by people in the 45-54 age segment, followed by those in the 55-64 age group, with 13%, and by the 65+ age segment, with 7%. This category of candidates mainly targets areas such as Finance/Accounting (with 8% of applications), Sales (with 7.5% of applications) and Human Resources (with 7% of applications).