From an investment
perspective, FIC noticed that companies' confidence in business
opportunities is maintained, because for the next 12 months more than
53% of companies have investment plans. These results remain at high
levels for BSI, marking a new peak. The bad news remains constant when
looking at infrastructure, transparency and policy coherence, reducing
bureaucracy and regulatory burden. Since 2016 these are, perceived as
very weak and uncompetitive by most respondents. At the same time, FIC
members consider that Romania has a very good opportunity to use the
funding available for reform and resilience programs and find the most
adequate solutions to address these issues by implementing PNRR.
Although the political situation in the last month has not responded to
the need for predictability of the business environment, the approval
of PNRR is an important moment for this country project that we are
ready to support in the implementation phase.
Euro area annual inflation rate reached the record high of the past 13
years in September, and analysts expect the upward trend to continue,
generating concern among ECB policymakers and investors, according to
Reuters. A flash estimate published by Eurostat on Friday shows that
annual inflation rate in the euro area grew to 3.4% in September, from
3% in August. This is the highest level since September 2008 and is
much above the European Central Bank (ECB)’s 2% target. Analysts had
expected annual inflation rate to reach 3.3% this month.
Ministry of Finance plans to contract RON 5 billion loans from
commercial banks in October 2021, of which RON 800 million through two
discount treasury certificate issues and RON 4.2 billion through nine
government securities issues. The amount of RON 630 million through
additional sessions of non-competitive offers, corresponding to bond
auctions, can add to these. The total amount, of RON 5.6 billion, is
RON 1.2 billion higher than the RON 4.405 billion level scheduled for
September 2021 and will be used to refinance public debt and to finance
the state budget deficit.
The Ministry of Finance will launch three new government securities
issues within the Tezaur Program, at interest rates of 3.50%, 4% and
4.40%, starting from Monday, 4 October. The government securities can
be purchased from the State Treasury units between 4 and 27 October,
and from the Romanian National Post Company’s post offices during the
interval 4-26 October for the urban areas and between 4 and 25 October
for the rural areas.
The number of companies and authorized individuals (PFA) to have faced
insolvency grew by over 7.61% in the first eight months of this year,
compared to the similar period of 2020, a number of 3,848 insolvencies
having been recorded, according to data published on the National Trade
Register Office (ONRC)’s website. The most companies and PFAs that
faced insolvency were registered in Bucharest, namely 708, down by
7.45% against January - August 2020, when 765 insolvencies had been
reported. The fewest insolvencies were recorded in the counties of
Harghita (15), Covasna and Tulcea (16 each) and Vaslui (18).
The National Bank of Romania (NBR)’s foreign exchange reserves
decreased by EUR 400 million in September, compared to August 2021, to
EUR 41.2 billion, following EUR 779 million worth of inflows and EUR
1,179 million worth of outflows. The EUR 779 million inflows
represented changes in credit institutions’ foreign
currency-denominated required reserves with the NBR, inflows into the
Ministry of Finance’s accounts, inflows into the European Commission’s
account and other. The EUR 1,179 million outflows represented changes
in credit institutions’ foreign currency-denominated required reserves
with the NBR, interest payments and principal repayments on foreign
currency public debt and other.
The European Fund for Southeast Europe (EFSE) offered a new loan, of
EUR 10 million (local currency equivalent), to BT Microfinanţare (BT
Mic), part of Banca Transilvania. The investment will allow the
institution to increase access to micro- and small-sized enterprises’
RON-denominated financing, according to information provided by EFSE
representatives. BT Mic and EFSE have been partners since 2018 and,
apart from financing, they also launched an acceleration program called
Start Online in March 2021.
The Romanian National Post Company has announced that it has finalized
the first stage of the postal network’s modernization plan involving
latest generation computer technology and has received a first batch of
1,100 computers. Another 2,400 computers are to arrive by the end of
October. The procedure for the postal network’s modernization with new
computer technology, computers and printers will reach a total level of
investments of over RON 10 million, VAT not included. The source of
financing is ensured from the credit line granted by EximBank.
WIP Industries, a supplier of components for the furniture industry, is
carrying out a EUR 35.9 million investment on the Romanian market, of
which EUR 17.9 million is state aid, according to data made available
by the Ministry of Finance. The project is about to begin and will
create 187 jobs. According to a recruitment ad published on the eJobs
platform, the factory spreads on a 6,700 square meter built-up area and
will manufacture furniture subparts for Ikea suppliers.
The Government Decision introducing new measures to limit the Covid-19
pandemic, by amending the Government Decision on the extension of the
state of alert, has been published in the Official Gazette of Romania.
Once the document becomes available, county committees for emergency
situations can meet in order to decide upon the restrictions for
localities with infection rates of over 6 per one thousand, in
accordance with the new legal provisions in force. Bucharest Prefect’s
Office has announced that Bucharest Committee for Emergency Situations
will meet, and the measures will enter into force at midnight. The
Covid-19 infection rate in Bucharest has exceeded 8 per one thousand
Euro area finance ministers will discuss soaring energy prices on
Monday, 4 October, concerned they could slow economic recovery, impact
on investment decisions and disproportionately hit the poorest. But
ministers will discuss the issue separately and share best practice how
to deal with the problem since they need to prepare 2022 budgets that
will be heavily affected by energy costs.
Education Minister Sorin Cîmpeanu has stated that verification actions
in schools in order to ensure compliance with all the health protection
rules amid the Covid-19 pandemic will start on Monday, 4 October.
Moreover, Minister Cîmpeanu has once more called on parents not to send
their children to school if they have the slightest symptoms specific
to the novel coronavirus and has pointed out that non-invasive tests
will be provided from the state budget, through the National Office of
A new tranche of vaccines from Pfizer BioNTech, consisting of 303,030
doses, is to arrive in Romania on Monday, 4 October, according the
National Committee for the Coordination of Anti-COVID-19 Vaccination
Activities. The vaccines will arrive by air at Otopeni airport.
Transport to storage centers shall also be ensured by the manufacturing
company, including by land. Vaccines are transported in optimal safety
conditions, in special containers, with carbonic ice and sealed foil.