Economic sentiment in Romania continued to deteriorate in September, an
evolution which, coupled with the evolution of the pandemic in the
country, indicates a very high probability for economic growth to have
slowed down in the past two months, with economy having already reached
its maximum growth speed in the spring and summer months. Economic
sentiment also fell slightly in August, after a rise in July and
another deterioration in June. According to the European Sentiment
Indicators (ESI) calculated by the European Commission, business
climate in Romania deteriorated by a monthly rate 1.9 points for
September, the Economic Sentiment Indicator having reached 100.3
points, after having dropped 1.3 points in August, to 102.2 points.
Romania’s ten-year financing cost, the barometer for the cost of money
in economy, grew considerably last week and reached a new record high
of the past 15 months, of 4.4%. Long-term financing costs resumed
growth two weeks ago after the ten-year yield (RO10Y) had stood at
3.86% on 17 September. Romania borrows money on this maturity at 45%
higher costs than at the beginning of 2021 and at the highest cost in
the European Union
Industrial producer prices (domestic market and external market) grew
by 15.9% in August 2021 compared to the same month of 2020 and were up
1.5% against July 2021, according to data published by the National
Institute of Statistics (INS). At the level of the domestic market, the
industrial price index increased by 1.5% in August 2021 month-on-month,
and by 17.39% year-on-year.
The net flow of foreign direct investments (FDI) in banks and insurance
in 2020, of EUR 1.45 billion, was the highest one last year, followed
by investments in industry, especially in the manufacturing one, and
trade, according to data from the National Bank of Romania. The net
flow of FDI in the financial sector grew by EUR 352 million (32%) in
2020 compared to the level recorded in 2019.
The average rate of non-performing loans (NPL) in the Romanian banking
system restarted growing in January 2021, having reached 3.90%, after
having followed a downward trend in H2 of 2020, to 3.83% in December,
according to NBR data. In 2020, banks continued to clean their balance
sheets. As a result, the average NPL rate fluctuated around 4% of total
loans, having even gone below this threshold. The 3.83% level reached
by the average rate of non-performing loans in December 2020 was the
lowest one last year, but also the record low of the past decade. The
highest level of the NPL rate in 2020, of 4.83%, was reached in June.
Vista Bank clients will have access to over 500 Euronet ATMs in
Romania, under the same cost conditions as when using the bank’s ATMs,
based on a partnership signed with Vista Bank and Euronet Worldwide.
Moreover, the two companies have also agreed on the gradual integration
of Vista Bank ATMs into the Euronet network within the following
months. As a result, individuals and legal entities will be able to use
their Vista Bank cards, at no additional cost, at any Euronet ATM in
the country, to perform cash withdrawal, balance query, PIN code change
and unlock operations.
Scandinavian furniture and home goods retailer JYSK keeps expanding in
Romania and is to inaugurate on a new store in Sibiu on Thursday, 7
October. It will thus reach a network of 107 units on the local market.
This will be JYSK’s third store in Sibiu, with a total area of 1,250
square meters. JYSK plans to inaugurate at least 15 new stores within
the next 12 months, and to rearrange all units opened before 2018
within the following years.
Romstal Group’s majority shareholder Enrico Perini is to grant EUR
100,000 financing to Sypher, the local start-up that developed the GDPR
virtual assistant - a software platform for companies in the GDPR
compliance process - and which has recently launched a financing
campaign for SeedBlink. The investment round is led by Sparking Capital
with EUR 225,000, as the main investor. The company aims to raise EUR
325,000 from investors through SeedBlink, with investment vouchers
starting at EUR 2,500.
Energy Minister Virgil Popescu announced on Monday, 4 October, after
the government meeting, that the Emergency Ordinance on electricity and
gas bills’ compensation for the 2021-2022 winter season had been
adopted. The compensation will be granted for all prices exceeding RON
0.68 per megawatt. The budgetary impact for bills’ compensation amounts
to RON 1.3-1.4 billion, the Minister indicated. In order to benefit
from the compensation, Romanians will have to meet a consumption limit
of 30-200 kilowatts per month or 150-1000 for the entire period 1
November 2021 – 31 March 2022.
On Monday, 4 October, the Senate adopted, without any changes and as
the first notified body, the Emergency Ordinance (OUG) 95/2021
approving the "Anghel Saligny" National Investment Program worth RON 50
billion, allowing local public administration authorities to conclude
multi-annual financing contracts to carry out works for water supply,
sewerage, roads of local interest, natural gas distribution systems,
during the interval 2021 - 2028. The legislative initiative will be
voted on by the Chamber of Deputies, which is the decision-making
organism.
The European Commission initiated on Monday, 4 October, a public
consultation on its plan to protect journalists and human rights
defenders from litigation designed to curtail their work. Feedback from
the consultation will inform the Commission’s upcoming initiative
focused on the so-called Strategic Lawsuits against Public
Participation (SLAPPs), which are often used by businesses, governments
or individuals to silence figures from the media or human rights
fields.
The European Union is working to strengthen various data-sharing
mechanisms. The aim is to promote the availability of data that can be
used to power applications and advanced solutions in artificial
intelligence, personalized medicine, green mobility, smart
manufacturing and numerous other areas. The Data Governance Act is part
of a wider policy to give the EU a competitive edge in the increasingly
data-driven economy.
The European Commission has approved EUR 2 billion of additional
resources for recovery in Romania, Italy, Spain and Luxembourg,
following the modification of some operational programs. Romania will
thus receive EUR 56 million to provide material support for
disadvantaged groups, such as hot meals, assistance to disadvantaged
children with school supplies and to disadvantaged mothers with
essential kits for their newborn babies.
The union of administrative employees (TESA) in the healthcare sector
announced on Monday, 4 October, that it firmly rejected any draft law
that would make the right to work conditional on vaccination or testing
at workers’ cost. According to them, rulers want to illegally impose
this condition onto the entire personnel in the healthcare system, amid
the current restrictions. The trade unionists indicated that "one can
immediately identify the aberrant measures making the right to work
conditional on the European COVID-19 digital certificate" in the
normative act put up for public debate.