Daily Newsletter - 6 October 2021


Macroeconomic (2)
Financial (3)
Investment (4)
Legislative (4)
European News (1)
Social (2)
Total average monthly incomes stood at RON 5,573 per household in Q2/2021
Total average monthly incomes in nominal terms stood at RON 5,573 per household and RON 2,196 per person in Q2/2021, according to data published by the National Institute of Statistics (INS) on Tuesday. In terms of total expenditures, households’ spending mainly targeted food and non-food products, services and transfers to public and private administrations and to social security budgets, in the form of taxes, contributions, charges, and needs related to household’s production (animal and poultry feed, payment of labor for household production, sowing products, veterinary services, etc.).
Romanian economy is expected to grow by 4.3% in 2021
Romanian economy is expected to grow by 4.3% in 2021, after having contracted by 3.9% in 2020, and to record a 4.1% advance in 2022, according to the World Bank’s latest Regional Economic Update published on Tuesday, 5 October. In January 2021, the World Bank had forecast that Romanian economy would shrink by 5% in 2020, but would grow by 3.5% in 2021 and by 4.1% in 2022. In June’s report on global economic prospects, the World Bank had estimated that the country would record 6% GDP growth this year, 2.5% above the projection from January, and that it would record a 4.5% advance next year, 0.4% above the previous forecast.
A transaction with 10 million BT shares was recorded into BSE’s system on Tuesday
A transaction with 10 million Banca Transilvania shares, worth RON 26.3 million, was recorded into Bucharest Stock Exchange (BSE)’s system on Tuesday, 5 October, at 15.49, according to BSE data. The transaction was made at RON 2.63 per unit, up by 0.2% compared to the previous session, and the package of shares represents 0.16% of the share capital of the bank in Cluj, the biggest credit institution in Romania.
BRD has launched a podcast on financial topics
BRD has launched a podcast on financial topics, during which the hosts will discuss, debate and popularize certain information and will explain complex financial issues in a simple and understandable way, avoiding sophisticated or specialized language. The podcast will be made by Irina Chiţu, a journalist, a financial analyst and founder of the comparator, and by Tudor Stoica, a consultant in the information technology industry, founder of Reţeaua and Mind Architect podcasts.
NBR decided to increase the monetary policy rate to 1.50% per year
On Tuesday, 5 October, the National Bank of Romania’s Board of Directors decided to increase the monetary policy rate to 1.50% per year, from the record low of 1.25%, a decision anticipated by some analysts, given the growing inflation. NBR also decided to raise the deposit facility rate to 1.00% per year, from 0.75% per year, and the lending (Lombard) facility rate to 2.00% per year, from 1.75% per year, as of 6 October 2021.
ALC Inject Polistiren is to invest EUR 1.4 million
Plastic products manufacturer ALC Inject Polistiren is to invest EUR 1.4 million, half of this sum being state aid, according to data from the Ministry of Finance. This investment, which is soon to be launched, is expected to create 22 jobs. The company’s representatives have not provided any details about this project.
IRUM Reghin has invested over EUR 7 million in technology refurbishment
IRUM, a company controlled by the Oltean family, with over 500 employees in the factory in Reghin, has invested over EUR 7 million in technology refurbishment and has launched on the market a new model of forestry equipment, TAF 690 S5, intended both for the Romanian market and for Europe and the USA. The equipment can be pre-ordered starting from November, and serial production will start in January 2022, according to the company.
EBRD becomes a shareholder at Euroins and invests EUR 30 million
The European Bank for Reconstruction and Development (EBRD) has signed an agreement to acquire a minority stake in Euroins Insurance Group, one of the largest independent general insurance groups in Central, Eastern and South-Eastern Europe. The EBRD is investing EUR 30 million through a new capital increase, while Eurohold, the insurance group’s parent company, is providing a further equity injection of EUR 12 million. The EBRD is also working with the Financial Supervisory Authority (ASF) to develop new regulations for managing compensation claims.
LIFE IS HARD to invest RON 14 million from EU financing in the development of
The EU financing contract recently signed by the company LIFE IS HARD from Cluj targets investments in the development of the big data-based platform and has a total value of RON 14,850,322.12, of which non-reimbursable financing represents RON 10,122,484.75. The investment in the new version of the 24broker platform will offer the most advanced digital management tool on the insurance brokerage market and will have direct effects on the user satisfaction level, while the technical facilities offered will represent a competitive advantage that LIFE IS HARD (LIH) owns in the digitalization area.
Finance Ministry is extending guarantee provision period within SME FACTOR Program
The Ministry of Finance intends to simplify and make more flexible the Emergency Ordinance approving the SME FACTOR Program - Commercial Credit Guarantee Product and the associated State Aid Scheme. The proposed improvements allow creating a framework adapted both to the requirements of the SME sector in the current context, and to the Program’s proper implementation by credit institutions and non-banking financial institutions in Romania.
Government adopted guarantee-return system for non-reusable primary packaging
The Government decision regulating the guarantee-return system for non-reusable primary packaging, according to which a RON 0.50 guarantee is paid for any packaging of beverage purchased, was approved by the Government on Monday, 4 October, according to the Ministry of Environment, Waters and Forests (MMAP). Within the new system, the RON 0.50 guarantee will be recovered as soon as the used packaging is returned to any store in Romania. Moreover, the system will be mandatory for all stores, from small ones to supermarkets.
Government has amended the Forestry Contraventions Law
Environment Minister Tanczos Barna has stated that the Government has approved, through an emergency ordinance, the amendment to Law 171 establishing and sanctioning forestry contraventions, in order to make sure SUMAL 2 users comply with the law in force. The Minister has added that the normative act introduces several forestry contraventions that will be sanctioned with a warning or with a RON 1,000 – 3,000 fine for taking photographs that are inconclusive or are not in direct correlation with the means of transport and with the transported cargo.
Government adopted OUG on the implementation of the national electronic invoice system
Finance Minister Dan Vîlceanu stated on Monday, 4 October, that the Government had adopted the draft Government Emergency Ordinance (OUG) on the implementation, administration and operation of the national electronic invoice system, a strategic project for Romania. He indicated that the structure of the electronic invoice was regulated in strict accordance with the European electronic invoice standard and, at the same time, the basic technical specifications of the electronic invoice in Romania were created through this OUG.
European News 
EMA has approved booster doses of Pfizer/BioNTech Covid vaccine for people over 18
The EU’s drug watchdog has approved booster doses of the Pfizer/BioNTech Covid vaccine for all people aged 18 and over. The recommendation comes after studies showed that an additional dose of this vaccine increased the ability to produce antibodies against the virus that causes COVID-19 in patients with organ transplants and a weakened immune system.
Almost the entire Romania is in the red scenario based on the Covid-19 incidence rate
Almost the entire Romania is in the red scenario based on the Covid-19 incidence rate, according to data transmitted by the Strategic Communication Group on Tuesday, 5 October. Covasna and Harghita are the only counties still in the green scenario, and Dâmboviţa, Mureş, Tulcea and Vrancea Counties are in the yellow scenario. On the other hand, the highest Covid-19 incidence rate at county level is recorded in Ilfov, where there are 10.68 cases per one thousand inhabitants. Bucharest ranks second, after having exceeded the threshold of 10 per one thousand inhabitants on Tuesday, having reached 10.31.
Over 80% of Romanians believe things in the country are going in the wrong direction
More than 80% of Romanians believe that things in the country are going in the wrong direction, while 12.5% believe that things are going in the right direction, according to a survey conducted by INSCOP Research in partnership with Verifield, and commissioned by the Strategic Thinking Group think tank. The percentage of dissatisfied citizens is higher than in June, when 68.1% believed that things were going in a good direction, but also compared to March, when the percentage had stood at 70.3.