Daily Newsletter - 30 May 2022


Macroeconomic (3)
Financial (4)
Investment (4)
Legislative (3)
European News (1)
Social (3)
The growth coefficient of average net wages per economy in March 2022 was 13,336.72
The growth coefficient of average net wages per economy in March 2022 was 13,336.72 compared to January and 3,095.86 compared to February 1992, the National Institute of Statistics (INS) announced on Friday. The coefficient is reported to county and local councils, town/city halls and mayor’s offices, trading companies and units specializing in the sale of residences, in accordance with the provisions of Law 112/1995 regarding the sale/purchase of nationalized dwellings.
Ministry of Development announces payments of over RON 48 million for PNDL investments
On Friday, the Ministry of Development, Public Works and Administration (MDLPA) transferred the amount of RON 48,547,115.81 for the settlement of invoices for 86 investment projects carried out within the first and second phase of the National Local Development Program (PNDL). RON 12,309,774.10 was thus paid for the first phase, for 12 projects under implementation, and RON 36,237,341.71 was settled for the second phase, for 74 investment projects.
Managers expect prices in the manufacturing industry to grow considerably
Romanian managers expect prices in the manufacturing industry, in constructions and in retail trade to grow considerably over the next three months, according to data published by the National Institute of Statistics (INS) on Friday. Within the survey conducted in May 2022, managers in the manufacturing industry forecast a moderate increase in the volume of production for the following three months (cyclical balance +12%). The biggest increase will be recorded by the beverages manufacturing activity (cyclical balance +31%). As to the number of employees, relative stability was projected, with a cyclical balance of +4% for the overall manufacturing industry. Industrial producer prices are expected to grow significantly over the next three months (cyclical balance +43%).
BCR is preparing new green bonds for Bucharest Stock Exchange
BCR, the second biggest credit institution in Romania after Banca Transilvania, is preparing to bring a RON-denominated green bonds issue onto Bucharest Stock Exchange at the beginning of June. The financing would be senior non-preferential, i.e. which there is no trading history for, and compliant with minimum requirement for own fund and eligible liabilities (MREL) criteria. According to Ziarul Financiar information, the green bonds will have four-year maturity, but the interest rate and value have yet to be determined.
Alpha Bank Romania doubled its operating profit in Q1/2022, to EUR 5.6 million
Alpha Bank, one top 10 biggest banks on the Romanian market asset-wise, recorded a EUR 5.6 million operating profit in Q1/2022, up by 143% compared to the EUR 2.3 million level reported in the same period of last year. At the end of March, Alpha Bank Romania’s loans portfolio stood at about EUR 2.8 billion, up by 6.1% year-on-year, while deposits attracted from clients reached nearly EUR 2.7 billion, according to data transmitted by representatives of the banking institution on Friday.
European Bank for Reconstruction and Development increases its presence in Romania
The European Bank for Reconstruction and Development (EBRD) has recently announced that it increased its presence in Romania by inaugurating a new regional office in Cluj-Napoca, the second biggest city in the country. The office in Cluj-Napoca will mainly support local SMEs in the region by providing expert consultancy, training and access to financing. Located in the heart of historic Transylvania, Cluj-Napoca is a gateway to three strategic regions in Romania: the north-west (where it is located), the center and the west.
OTP Bank Romania supports entrepreneurs in agri-food sector
OTP Bank Romania is one of the partner financial institutions to have joined the program aimed at supporting SMEs activating in the agri-food sector by allocating micro-grants and working capital grants. The program, launched by the Ministry of European Projects and Investments together with the Ministry of Entrepreneurship and Tourism and the Ministry of Agriculture and Rural Development, is part of the "Support for Romania" package of measures and aims to reduce the significant impact generated by the growing prices of basic products and to provide support for the recovery of enterprises in agriculture, fish farming, aquaculture and food industry.
Lucian Grecu, the owner of Unirea Hotel, started construction works on two blocks of flats
Lucian Grecu, the owner of Unirea Hotel in Iaşi, has started construction works on two blocks of flats located on the land of the former Nicolina machinery plant in Iaşi, on a 5,200 square meter area. The investment amounts to EUR 20 million, which comes from the developer’s own funds and from a loan contracted from Banca Transilvania. The entrepreneur had announced his intention to build the dwellings ever since 2019, but the Covid-19 pandemic prevented the start of the investment projects.
Chef Cezar Predescu has launched Caupona in the north of Bucharest
This spring, Chef Cezar Predescu has launched Caupona, a restaurant that focuses on new contemporary Romanian cuisine with Italian influences, located in the north of Bucharest, in Primăverii area. The initial investment amounted to about EUR 400,000, and financial investments will continue for the development of educational projects in the gastronomic area. Caupona brings to Bucharest a gastronomic culture, a restaurant concept centered on an intimate atmosphere (developed during the pandemic period, when social distancing was very important) and a cuisine that combines innovation, premium ingredients and modern techniques.
A US surgical robots manufacturer to invest 80 million leva in a plant in Bulgaria
US surgical robots developer and manufacturer Intuitive Surgical plans to invest over 80 million leva in Bulgaria. The US company will build a modern production unit in the town of Parvomay, in the south of Bulgaria, in order to increase its production capacity for 3D endoscopes for surgical robots, the Bulgarian Ministry of Innovation and Growth announced on Monday, 23 May. The Intuitive Surgical 3D endoscopes, which are currently manufactured in Germany, are used in the Vinci Surgical System, the world’s most advanced surgical robot. The investment in Bulgaria will create more than 100 new jobs, and this number can grow to 300 in the following years.
BAT invests over EUR 1 million per year in training and professional development programs
British American Tobacco (BAT) recruits about 200 new employees per year and invests over EUR 1 million per year in training and professional development programs. Even though the labor market has recorded major fluctuations in the past few years, an employee stays for at least seven years, on average, with BAT Romania. The company has tripled the number of employees in its three economic entities in Romania in recent years (from about 1,200 employees in 2013 to over 3,000 at present) and indirectly generates another 30,000 jobs through its supply and distribution chain.
Dîncu signed draft OUG updating and improving salaries in National Defense Ministry
On Tuesday, 24 May, National Defence Minister Vasile Dîncu signed a draft emergency ordinance updating and improving a number of provisions regarding salaries and other financial rights of the personnel activating in the Ministry of National Defence and other institutions part of the defense, public order and national security system, the ministry announced on Friday. The emergency ordinance provides for the possibility of updating, as of 1 July 2022, the payment corresponding to military personnel, policemen and prison officers’ professional rank. Moreover, professional non-commissioned officers and soldiers will be entitled to a monthly rent allowance of up to 50% of the rank payment, under similar conditions as serving military personnel.
Competition Council has recommended modernizing legislation
The Competition Council has recommended updating the legislation on food additives, in order to keep up with the European laws, according to a press release issued by the institution. The norm on food additives for use in food products for human consumption, issued by the Ministry of Health, has not been updated since 2011, while the European legislation (Regulation (EC) No. 1333/2008) has been amended several times, most recently in December 2020.
Intelligence services laws will get to government in a week’s time
Prime Minister Nicolae Ciucă announced on Friday, while on an official visit to Brașov, that the security laws package, which would contain draft laws on the functioning of intelligence services, the army and the Supreme Council of National Defense (CSAT), was being analyzed by the ruling coalition parties and would be debated by the government in a week’s time. The leaders of the ruling coalition announced two months ago that they wanted the package of laws to get through Parliament within an urgency system. A special committee in charge of analyzing the package has been set up in Parliament, in order to shorten the debates.
European News 
G7 pledges to phase out coal power
Ministers from the world’s richest democracies agreed on Friday (27 May) to phase out coal-powered energy, but failed to set a date to do so. The commitment, published at the end of three days of Group of Seven (G7) talks in Berlin, was weaker than a previous draft of the final communique seen by Reuters, which had included a target to end unabated coal power generation by 2030. Sources familiar with the discussions said Japan and the US had both indicated they could not support that date. However, the pledge marked the first commitment from the G7 countries to quit coal-fuelled power. Of all fossil fuels, coal emits the most climate-killing carbon dioxide and its use needs to plummet if the world is to avoid the worst impacts of climate change.
Only 5% of Romanian employees currently have the job they dreamed of as children
95% of Romanian employees say they work in different fields than those they dreamed of when they were children, and the choice was influenced by maturity (55%), by the educational background (36%) and by parents (9%). According to the survey conducted by BestJobs on the occasion of 1 June, 45% of respondents dreamed of becoming teachers when they were children, another 18% wanted to become aviators, 10% - lawyers, 9% - cooks, while 7% dreamed of becoming doctors. Only 5% of these aspirations eventually came true.
PSD leader Marcel Ciolacu assures pensions will be increased starting from 1 January 2023
The president of the Social Democratic Party (PSD) Marcel Ciolacu has assured that pensions will be increased "at least" by the inflation rate starting from 1 January 2023. Mr. Ciolacu has admitted that "there is still a long way to go" before Romania’s economic growth is felt by the population. The Social Democratic leader has pointed out that the decisions taken by the Government regarding the social packages "were the right ones" and can be seen in the economic upturn.
Companies’ relocation to Romania could be an opportunity for those who want to return
President Klaus Iohannis stated that the relocation of some companies to Romania, amid the war in Ukraine, could be an opportunity to encourage those who wanted to return to Romania. In a message published on the occasion of the Day of Romanians Everywhere, the Head of State also emphasized the importance of the Government’s actions to support Romanians who wish to return to their country, through dedicated programs.