News

Daily Newsletter - 7 June 2022

Summary

FIC (1)
Macroeconomic (3)
Financial (3)
Investment (4)
Legislative (1)
European News (1)
Social (1)
FIC 
Budgetary challenges must be addressed through sustainable measures for economy

The stability and predictability of the tax system must be a priority for the authorities in order to maintain a strong and attractive business environment. Only in these conditions will the private sector be motivated to continue investing in our country and to provide jobs for its citizens. Any change in the fiscal framework without impact assessments and dialogue with the business community, could compromise the potential for economic development, which is mainly based on attracting foreign direct investment. As resulted from the latest FIC Study, the taxes paid by the FIC member companies have a significant direct contribution to supporting the State budget, the economic growth registered in Romania, as well as to building wealth. The results show a detailed picture of the major contribution of large Romanian companies with foreign capital to the state budget, the most important indicator being the level of VAT collection, which is the highest. The report/study provides details regarding the contribution of a representative sample of Romanian companies with foreign capital to tax revenues through the level of taxes paid to the state budget.

Macroeconomic 
Economists talk about the prospects of a shock generated by at least three overlapping crises
More and more economists are talking about the prospects of a shock generated by at least three overlapping crises. Interest rates are growing and economies are slowing down. The Minister of Finance has stated that a crisis is out of the question, while the state is borrowing at record high interest rates. Loan instalments will be updated starting from 1 July. The 490,000 Romanians who have ongoing loans calculated based on the ROBOR index will pay RON 350 more than after the latest update, in April. The ROBOR index has already exceeded the 6% threshold, and specialists say it could reach 6.5% by the end of the month. Money is not only scarcer, but also more expensive, according to economist Cristian Popa, a member of NBR’s Board of Directors.
Companies are faced with many challenges following Covid pandemic and amid Ukraine war
Companies are faced with many challenges following the coronavirus pandemic and amid the war in Ukraine, but about half of the surveyed companies are doing well, according to a survey conducted by AHK Romania in April 2022. The current situation of German companies in Romania has slightly deteriorated, but most of them continue to rate it as good (over 51%, autumn 2021: 67%). More than 37% of respondents believe their company’s situation is satisfactory, while the remaining 10.7% consider the situation is currently difficult. This illustrates the current situation of economy and of companies, but also offers an overview of the most important risk factors in business development from companies’ point of view.
Arrears corresponding to the general consolidated budget grew by 2.23% in April
Arrears corresponding to the general consolidated budget grew by 2.23% in April 2022 compared to the previous month, to RON 179.31 million, from RON 175.4 million, according to data published on Finance Ministry’s website. Arrears over 90 days decreased by 0.16%, from RON 64 million to RON 63.9 million, while arrears over 120 days increased by 4.9%, from RON 60.8 million in March to RON 63.8 million in April 2022. Arrears over 360 days also rose, from RON 50.7 million to RON 51.6 million (+ 1.77%).
Financial 
Idea Bank will be integrated into BT Financial Group by 13 June
Idea Bank’s integration into Banca Transilvania (BT) financial group has entered its final stage; as a result, the transfer to BT of part of the contracts concluded between Idea Bank and its clients will be completed by 13 June, about one year after signing the acquisition agreement. Thus, 10 June is the last day when clients can make operations through Idea Bank and when Idea Bank cards (until 17:00) and the Idea myBank application can be used (until 13:00), according to information provided by Banca Transilvania.
BCR Group and Arval Romania agree on takeover of part of BCR Fleet’s operational leasing
BCR Group and Arval Romania have signed an agreement for the takeover of part of BCR Fleet Management’s operational leasing activity, the two entities have announced. The agreement was concluded last week and the finalization of the transaction is subject to several conditions precedent, including the Competition Council’s approval, and is expected to take place before the end of 2022. The agreement also stipulates that the two entities will collaborate for the sale of Arval mobility products to BCR clients.
Raiffeisen Bank launches Raiffeisen Smart Market
Raiffeisen Smart Market is an innovative, digital ecosystem-based loyalty app that aims to bring together individual digital customers and corporate partners and merchants, to share expertise, mobilize resources and generate value for all. Raiffeisen Smart Market is part of the bank’s digitalization and innovation strategy, complementing the portfolio of digital products and solutions offered to clients and customized to their needs.
Investment 
Eden Capital Development launches new investment in Bucharest
Eden Capital Development maintains its plans for 2022 and launches a new investment in Bucharest, which will bring a new residential complex, called Cortina Forest, onto the market. The complex will have over 400 apartments and the investment has been estimated at EUR 200 million. Cortina Forest is located in Pipera area - Erou Iancu Nicolae Street, on a 30,000 square meter land purchased two years ago.
INVL Renewable Energy Fund I has announced that it will start operations in Romania
INVL Renewable Energy Fund I, managed by INVL Asset Management, the main asset management company in Lithuania, has announced that it will start operations in Romania and plans to invest about EUR 120 million in the development of the solar parks it has recently acquired. According to company officials, the fund has recently taken over two companies developing solar power plants with a capacity of 166 MW in Romania. The projects have already received the necessary approvals for connecting to the grid and the solar power plants, which the fund plans to invest in, should become operational in 2024.
Romanian Post Company invested RON 120,000 in its first Digital Postal Counter
The Romanian National Post Company (CNPR) has invested RON 120,000 in the operationalization of its first Digital Postal Counter, inaugurated on Monday, within Post Office 63 in Bucharest, and plans to install other 70 such points at national level in the following period, the General Director of the national postal operator, Valentin Stefan said on Monday, during the launch of the new terminal. Moreover, Minister of Research, Innovation and Digitalization, Sebastian Burduja, said that the Romanian Post Company followed the technological trend of this period.
Alira Grand Vins opens Aliman winery in Constanta County
Romanian company Alira Grand Vins has invested EUR 5.2 million to open the Aliman winery in Constanta County, a project to have started in 2019 and which benefitted from EUR 2.5 million public financing from the Agency for Rural Investment Financing (AFIR) within the Ministry of Agriculture and Rural Development. The Aliman winery was launched in July 2019 and was completed in 2022.
Legislative 
Several PNL MPs have submitted a draft law in Parliament
Several Liberal (PNL) MPs have submitted in Parliament a draft law compelling the principals of educational establishments to know Romanian. The legislative proposal amending and completing National Education Law 1/2011 was also signed by MPs from the Social Democratic Party (PSD). The initiators state that the managerial function involves institutional relations with Romanian state authorities, both at local and governmental level, and such relations require good knowledge of the Romanian language.
European News 
EU urged to quickly adopt plan boosting gender equality on boards
EU lawmakers are working to strengthen the European Commission’s proposal to ensure that women fill 40% of non-executive board seats of listed companies, while campaigners call for a swift adoption of the text before the end of the French presidency of the EU Council. The proposal is currently under discussion with the European Parliament, trying to agree on a common legislative text with the EU Council representing EU member state governments.
Social 
Distribution of social vouchers will start on 13 June
Minister of European Projects and Investments, Marcel Bolos stated on Monday that the distribution of cards containing the RON 250 vouchers for food and warm meals would start on 13 June. Minister Bolos said that the cards issuing process had started, and would be followed by the cards’ distribution on 13 June and then by the charging of these cards. On 6 May, Minister Marcel Boloș had stated that about three million cards with RON 250 vouchers for people with a precarious financial situation would be progressively delivered by the Romanian National Post Company starting from 1 June.