A recent survey conducted by Ipsos for ING Bank shows that 8 out of 10
Romanians expect prices to grow by an average of 25% in the following
period. In this context, in order to keep up with the rising prices,
80% of them target discounts and promotional offers in their daily
shopping and more than 50% spend less on clothing items. Moreover, 36%
have postponed the purchase of durable goods (such as a car), 18% have
postponed starting their own business and 16% have postponed changing
jobs, while 14% are still thinking about having a baby.
Senate President Florin Cîțu has voiced concern over the government’s
"lack of a clear strategy" for the following period to counter "what
seems" to be coming, namely "a major economic crisis", considering that
only measures leading to growing expenses are being taken. He has
pointed out that the introduction of taxes would be the only viable
option if "negative crisis scenarios" come true. Referring to the
Chamber of Deputies’ decision to vote, as a decision-making body, on an
amendment to increase salaries, Florin Cîțu has indicated he is
concerned about this, given that the impact of these salary increases
had not been taken into account, stressing that the government’s role
is to present a strategy.
Romanian economy is expected to grow by 2.9% in 2022, the World Bank
indicated in its Global Economic Prospects report on Tuesday. The
estimates are better than those included in another report in April,
when the international financial institution had forecast that Romania
would record a modest 1.9% advance in 2022. Word Bank’s projections are
significantly lower than those in the January edition of the Global
Economic Prospects report. At the time, the organization had estimated
4.3% economic growth. For 2023, the World Bank has forecast 3.7% GDP
growth for Romania, compared to January’s 3.8% projection, and has
estimated 3.9% growth for 2024.
CEC Bank increased interest rates for household savings by 0.75-1.45%
on Tuesday, 7 June 2022. As a result, interest rate for three-month
deposits made by individuals has grown to 3.25%, from 1.80% previously.
If the deposit is made online, the interest rate for three-month
deposits reaches 3.35%. Most large banks have been raising interest
rates on deposits, a trend also supported by the National Bank of
Romania, in order to boost saving. Interest rates range from 2% to 6%
on the market.
Raiffeisen Bank, one of the largest credit institutions in Romania, is
preparing a RON-denominated green bonds issue that will be brought onto
Bucharest Stock Exchange at the end of June. The financing would be
senior non-preferential and eligible under the minimum requirement for
own funds and eligible liabilities (MREL). The bonds will have
four-year maturity and an interest rate 80-90 basis points above
Romania’s four-year government bonds, currently at 7.98%, which means
an interest rate of around 8.8% per year.
The National Bank of Romania (NBR) purchased RON 36.6 million
RON-denominated government securities from the secondary market in May,
according to monthly statistics published by NBR on Monday. The
purchase operations are meant to reduce the volatility of yields on
RON-denominated government securities, as investors are reducing their
exposure to sovereign bonds at local and global level, pushing up
financing costs. Apart from the weak demand for RON-denominated bonds
due to high inflation and to Romania’s complicated fiscal situation,
the local secondary market is illiquid. As a result, a moderate episode
of sale of RON-denominated bonds can push up sovereign yields
considerably.
Someș S.A. Water Company, where Cluj County Council is the majority
shareholder, has started an approximately RON 77.4 million (EUR 15.7
million) investment for the rehabilitation of water supply and sewerage
networks in the city of Cluj-Napoca. The investment is part of a EUR
355.6 million European project, financed through the 2014-2020 Large
Infrastructure Operational Program - POIM and carried out by Someș
Water Company.
Oradea City Hall has launched the tender for the extension of the
outpatient department of the B body of Oradea County Emergency Clinical
Hospital, a RON 38.8 million (EUR 7.8 million) investment, VAT not
included, covered from European funds. The deadline for submitting bids
in SEAP is 8 July 2022, according to a press release issued Oradea City
Hall. The current hospital building will be extended on the western and
northern side, occupying part of the existing platform for car access
and parking, a portion of the existing green space and the access road
behind the land corresponding to the building.
MedLife has inaugurated the first major medical clinic in Târgu Mureș.
The new multidisciplinary unit covers 16 medical and surgical
specialties for examinations, tests and minor surgery for patients from
the center and north of the country. The MedLife Târgu Mureș
Hyperclinic spreads on 1,000 square meters and comprises 12 medical
units, a sample collection unit, an imaging department equipped with
MRI and other medical equipment, a minor surgery room and a tests room.
The investment for opening this unit amounted to EUR 2 million.
Rottaprint has finalized the implementation of a project which more
than EUR 3.7 million has been invested into over the past three years,
in technologies and machinery for the sustainable manufacturing of
products in its portfolio. The project "Development of innovative and
environmentally friendly labels" was financed with support of grants
from Iceland, Liechtenstein and Norway through the EEA and Norwegian
Financial Mechanisms 2014 – 2021, under the program "Growing SMEs in
Romania!". Of the total investment, the non-refundable assistance
amounted to about EUR 1.5 million.
The ruling coalition’s MPs have submitted a draft law that will allow
city/town halls and mayor’s offices to settle transport costs of all
employees who live in other localities than the place of work. The
draft law was tabled by PNL, PSD and UDMR MPs last week. Moreover, the
ruling power’s parliamentarians are preparing an amendment to the
Salary Law that would increase mayors’ salaries as well.
The Chamber of Deputies’ joint Public Administration, National Defense,
Environment and Agriculture Committees decided on Tuesday to partly
approve President Klaus Iohannis’s request for reanalysis of the draft
law regarding interventions on bears to prevent and combat attacks on
people and property. Lawmakers maintained the provision according to
which the interventions will be carried both inside and outside the
built-up areas of localities. The draft law approving Government
Emergency Ordinance 81/2021 on the approval of immediate intervention
methods to prevent and combat attacks by brown bears on persons and
their property, inside the built-up areas of localities, had been
initially adopted by Parliament on 15 December 2021.
Save Romania Union (USR) has announced that it will challenge, at the
Constitutional Court of Romania, the draft law adopted by Parliament
which increased the payments of all dignitaries. The note correcting a
material error for a draft law adopted during last week in the plenary
session of the Chamber of Deputies, which was read on Tuesday in the
plenary of the same chamber, includes the President of Romania, members
of Parliament, members of Government, the Ombudsman, prefects,
sub-prefects, etc. among those who benefit from increased payments.
REPER has called on the ruling coalition and the President of Romania
to immediately clarify the content of the draft laws regarding national
security and the process of debate and adoption they propose. For
REPER, the message that the political environment must assume is that
the intelligence services, precisely as they are supposed to serve
citizens and the state, can no longer continue to operate in an
ambiguity that can generate imbalance and abuse of power.
The government plans to ask the European Commission for the
disbursement of €3 billion from its recovery and resilience plan in
October. Last week, the Romanian government sent the first payment
request for recovery and resilience funds to the European Commission,
including the targets and milestones set in the national recovery and
resilience plan for the end of 2021.The amount requested is around €3
billion (€2 billion in grants and €1 billion as loans). It adds to the
€3.7 billion already received by Romania as pre-financing from the
plan. Officials are now waiting to see if the European Commission needs
any clarifications for the 21 targets before making the payment.
Employers are accelerating activity on the labor market and are opening
new positions or looking to fill positions vacated as a result of the
growing employee mobility, despite the challenges faced since the start
of 2022, according to BestJobs representatives. BestJobs recruitment
platform has reached a new record high of 42,000 job offers, the
highest volume of active jobs in the past two and a half years.
Moreover, the number of candidates contacted with a job offer has
increased by more than 30% compared to the previous month.
A Google analysis of travel-related searches over the past three years
shows that Romanians have resumed their travel intentions abroad with
the lifting of anti-COVID restrictions and are turning to traditional
summer holiday destinations - Greece, Turkey, Bulgaria. Campsites and
private villas, accommodation options that offer more privacy and
reduced risk of illness, are the fastest-growing post-pandemic options.
The average total monthly incomes in 2021, in nominal terms, stood at
RON 5,683 per household and RON 2,243 per person, up by 8.9% and 10.5%,
respectively, against 2020. Total household expenditure in 2021 was, on
average, RON 4,876 per household per month (RON 1,925 per person) and
represented 85.8% of total income, up by 2% year-on-year, according to
data from the National Institute of Statistics. Of the total income,
cash income represented RON 5,313 per month per household (RON 2,097
per person), on average, up by 9.8% compared to the previous year,
while income in kind stood at RON 370 per month per household (RON 146
per person), down by 1.7% against 2020.