Daily Newsletter - 30 September 2022


Macroeconomic (3)
Financial (4)
Investment (4)
Legislative (3)
European News (1)
Social (2)
World Bank President says a recession in Europe seems increasingly likely
World Bank President David Malpass has warned that it could take several years for global energy production to diversify away from Russia, prolonging the risk of stagflation or a period of low growth and high inflation. He has announced that the World Bank’s upcoming report "Poverty and Shared Prosperity" will show that decades of progress in reducing poverty had slowed down by 2015, even before the Covid-19 pandemic, which sent an additional 70 million people into extreme poverty.
Romania is at risk of infringement over environment and energy strategies
On Thursday, 29 September, the European Commission decided to send letters of formal notice to Bulgaria, Ireland, Poland and Romania for failing to notify their national long-term strategies on the governance of the energy union and climate action. Stable long-term strategies are crucial to help achieve the economic transformation needed and broader sustainable development goals, as well as move towards the long-term climate goals set by the Paris Agreement.
IFC invests record amount to support the development of private sector in Romania
Despite the economic challenges generated by the Covid-19 pandemic and the Russian invasion of Ukraine, IFC stepped up its efforts to support companies in Romania with a record USD 458 million investment in 2022 tax year - between July 2021 and June 2022 – in order to protect jobs, support small businesses and accelerate a green and resilient recovery. IFC also invested EUR 42.5 million in a EUR 500 million green bonds issue launched by CTP N.V., a European owner-developer of sustainable industrial and logistics properties.
Raiffeisen Bank financed construction of RoCordis hospital in Timişoara with RON 5 million
Raiffeisen Bank has provided RON 5 million financing for the construction of the RoCordis hospital in Timişoara, which specializes in cardiovascular pathologies in adults and children, a project led by physician Gabriel Ivănică The funds ensured the completion of construction works and the purchase of the necessary equipment for the hospital, according to data transmitted by the bank’s officials on Thursday, 29 September 2022. Raiffeisen Bank is a top 5 universal bank in Romania, with 2.28 million clients, individuals and companies.
BT Leasing Transilvania to merge with Țiriac Leasing
BT Leasing Transilvania, controlled by Banca Transilvania, the biggest bank in Romania, will take over, through absorption, Țiriac Leasing, a company with RON 127.3 million revenues and a RON 30.5 million net profit in 2021. In 2021, BT Leasing reported a net profit of RON 61.7 million, on total revenues of RON 209 million. Banca Transilvania became the sole shareholder of Țiriac Leasing at the beginning of June 2022. Following a recent decision of shareholders, Banca Transilvania will receive RON 200 million dividends from Țiriac Leasing.
Banking sector has become a leader in Romania in terms of customer satisfaction
The banking sector has recorded the biggest increase in the level of consumer satisfaction (measured by the Customer Satisfaction Score) in 2022, having thus become the leader in this regard in Romania and having dethroned food trade, the market leader according to this indicator in 2021. Similar to the findings in 2021, there are still no visible differences among companies in terms of the experience they offer to customers, according to the McKinsey Customer Experience survey, conducted for the second time in Romania, a press release indicates.
GirlPower, OTP Bank’s mentoring program, ended with the granting of two scholarships
Launched a year ago, GirlPower, OTP Bank Romania’s mentoring program for young women at the beginning of their careers, ended with the awarding of two scholarships worth a total of EUR 6,000, paid directly by the bank, according to a press release. The cited source indicates that, at the end of an extensive learning process, scholarships were granted to Lucia Prisecariu, within ReGeneration Academy’s personal development program, and to Ana Vicoveanu, for the Fast Track Management program, organized by Bucharest International School of Management.
Olimpia Parking has completed the investment in a car park with 1,500 parking spaces
Olimpia Parking, a company with Romanian-Swiss shareholding, finalized the investment in a car park with 1,500 parking spaces located near Otopeni airport, in September 2022. The car park has been built on a five-level metal structure. It includes 36 22 kW stations for electric cars and one 90 kW fast charge station, according to Alina Niță, the company’s administrator.
Wonderland Cluj has invested RON 9 million in the past year for the development of the resort
Wonderland Cluj, a resort with an accommodation capacity of 38 rooms and which also provides horse riding and various outdoor activities, has invested about RON 9 million in the past year, through financing attracted with the help of the SME Invest program, as well as through bank financing, to finalize the last construction and increase its accommodation capacity by 25 rooms, Ioana Mârza, administrator of Wonderland Cluj, stated during the "From Vis to Biz" program, a project carried out by Ziarul Financiar in partnership with OTP Bank. She also explained that the initial investment in the resort in 2014, apart from the 7 hectares of land she already owned, had been ensured from a car and a well-positioned house in a district in Cluj.
Swedish farmers from Lantmännen Unibake launch their biggest investment in Romania
Bakery company Lantmännen Unibake, owned by a cooperative of Swedish farmers, with a EUR 4.8 billion annual turnover, which produces buns for McDonald’s on the local market, has launched in Romania the largest greenfield investment ever made at group level. The EUR 90 million project will consist of a bakery with three new production lines, to be opened successively on the platform in the town of Pantelimon, near Bucharest, and will create more than 300 new jobs. The first production line will double current sales, of EUR 25 million, and the plan is to reach a EUR 100 million annual turnover by the end of the project.
Timis County Council is building a heliport at Cioca Aerodrome
Timiş County Council is to invest RON 1.6 million for the construction of a heliport on Cioca Aerodrome, at the exit from Timişoara, where SMURD helicopters, private ambulances and even the largest helicopter of the Romanian Air Force, Mi-17, will be able to land. According to a press release issued by Timiş County Council on Thursday, the construction contract has been signed and actual works will start on 10 October.
Emergency Ordinance compensating fuel prices has been extended
Prime Minister Nicolae Ciucă announced, in the opening of the Government meeting on Thursday, 29 September, that the Emergency Ordinance on fuel price compensation would be extended. As a result, Romanians will benefit from the same compensation measure until the end of 2022, the Prime Minister added. Moreover, Energy Minister Virgil Popescu recently said that he did not believe diesel prices would exceed RON 9/liter in the following period.
USR submitted a draft law to ensure the transparency of political parties’ expenses with media
On Thursday, 29 September 2022, Save Romania Union (USR) submitted a draft law to ensure the transparency of political parties’ expenses from public money received as subsidies with media and propaganda. USR took into consideration the Council of Europe’s call for the declassification of contracts through which public funds are transferred by parties to the media. USR says it is thus responding to the numerous alarm signals about the way in which ruling parties use money from the state budget to ensure favourable media, so that issues with a major impact on the lives of all Romanians are either ignored or played down and to make sure the opposition is attacked with endless fake news.
Increase in unemployment benefit has been approved
On Thursday, 29 September 2022, President Klaus Iohannis promulgated the law increasing the unemployment benefit granted to people who contributed minimum one year to the public social security system, from 75% of the value of the social reference indicator to 100%. The draft law submitted by the Democratic Union of Hungarians in Romania (UDMR) in May 2020 amends Article 39, paragraph (2), letter a) of Law 76/2002.
European News 
Romania calls Russian referendums in Ukraine illegal and illegitimate
Romania’s foreign ministry reiterated its condemnation of the referendums being organized in Ukraine’s Russian-controlled areas, whose results were announced on Wednesday. Russia organized referendums in the four Ukrainian regions occupied by Russian forces. The Russian-backed authorities there said they expect results to go largely in favor of joining Russia, though the West and Kyiv maintain that the voting was held at gunpoint. The ministry also reaffirmed Romania’s strong support for Ukraine’s independence, sovereignty and territorial integrity.
88% of Romanians believe NATO is "very" or "rather" important for the country’s security
The importance of the North Atlantic Treaty Organization (NATO) as a guarantor of national security has grown by 11% over the past year in the public perception of 14 European and North American countries, according to an annual survey conducted by German Marshall Fund (GMF). Countries geographically close to Russia and Ukraine are those where NATO’s importance is higher (91% in Poland, 88% in Romania, 87% in Lithuania), but high percentages were also recorded in Western European countries such as Portugal (90%), the Netherlands (81%) or Germany (80%).
Romanians are pessimistic about the future of the planet
A study on how Romanians perceive climate change shows that Romanians, even those over 55, are convinced that global warming is real and are rather pessimistic about finding a solution to climate change. One of the main findings of the study is that young people aged 15-24 are more aware of the impact climate change will have and are more pessimistic compared to other generations, who estimate their optimism rate between 50% (over 54) and 52% (25-54).