News

Daily Newsletter - 8 October 2021

Summary

Macroeconomic (3)
Financial (2)
Investment (4)
Legislative (1)
European News (1)
Social (1)
Macroeconomic 
Ministry of Finance reopened a bonds issue due in November 2025
The Ministry of Finance reopened a bonds issue due in November 2025 and borrowed RON 413.6 million from banks on Thursday, 7 October, RON 87 million below the scheduled level, at an annual interest rate of 3.86%. Six primary dealers participated in the auction. The total volume of demand stood at RON 651 million, of which competitive offers amounted to RON 565 million, and non-competitive ones totaled RON 86 million.
International Monetary Fund expects inflation to reach an all-time high this autumn
The International Monetary Fund (IMF) expects inflation to reach an all-time high this autumn and return to pre-COVID-19 pandemic levels by mid-2022, but risks remain that shortage-driven inflation spikes could prove more persistent. The IMF’s baseline forecasts for advanced economies show headline inflation peaking at 3.6% in the fall of 2021 and declining to about 2% by the middle of next year. Emerging market and developing economies will record 6.8% inflation this autumn, and are then expected to see the rate decreasing to about 4% by the middle of 2022.
S&P estimates that global debt levels could reach about 260% of GDP by the end of 2021
Global debt levels could reach about 260% of Gross Domestic Product by the end of 2021, though low interest rates mean the ability to service it will be manageable, according to S&P Global Ratings. This global debt accumulation is a necessary process given policy responses during the pandemic, Vera Chaplin, the credit ratings agency’s managing director said on Thursday, 7 October, during an online forum co-hosted by Bloomberg and Asia Society Australia. Higher leverage and weakened credit metrics amid the recovery will probably trigger more defaults, she added.
Financial 
NPL rate stayed below the 4% threshold in the first seven month of 2021
The average rate of non-performing loans (NPL) in the Romanian banking system stayed below the 4% threshold in the first seven month of 2021, having decreased to 3.71% in July, the lowest level this year, but also of the past decade, after having oscillated around 3.9% of total loans during the spring months of 2021. The highest level of the NPL rate in the first part of this year, of 3.98%, was recorded in February.
Transilvania Leasing şi Credit IFN has concluded a contract which represents 20% of its turnover
Transilvania Leasing şi Credit IFN (TSLA), a company controlled by SIF Transilvania (SIF3), has concluded a RON 1.74 million real estate financial leasing contract for a building located in Sibiu, the company announced yesterday, through a report posted on Bucharest Stock Exchange’s website. The duration of the contract, whose value represents 20% of Transilvania Leasing şi Credit IFN’s turnover last year, is 84 months (seven years).
Investment 
Three construction companies will ensure the restoration and preservation of Banffy Castle in Cluj
A nearly RON 28 million contract has been awarded by Cluj County Council to three construction companies, for the restoration and preservation of Banffy Castle in Răscruci, Bonţida Commune, the venue of the Electric Castle festival. The companies in question are Constructim, Rustic and Tomoroga Construct, according to the information available on the company analysis platform Confidas.ro.
Flanco opens stores in Sibiu and Roşiorii de Vede, following a RON 2 million total investment
Flanco continues its efficient expansion strategy with two new store openings, in Sibiu and Roşiorii de Vede, both inaugurated in the cities’ newest retail parks. The investment in the two stores amounted to approximately RON 2 million. A number of 35 jobs were created following the opening of the two new units.
Agroland Business Systems announces the opening of its tenth Mega unit in 2021
Agroland Business Systems, a stores chain which specializes in the gardening, pet care and hobby farming segment, has announced the opening of its tenth Mega unit in 2021, following about EUR 200,000 investments, according to a report published at Bucharest Stock Exchange. Located inside the Prima Shopping Center in Sibiu, the new Agroland Mega store could generate a profit at mid-2022, according to the company’s forecasts.
Moderna to invest USD 500 million to make mRNA vaccines in Africa
US pharmaceutical group Moderna Inc. plans to invest USD 500 million to build a factory in Africa that would produce up to 500 million doses of mRNA vaccines every year, including its anti COVID-19 shot. Moderna’s proposed factory on the African continent is expected to include drug substance manufacturing as well as bottling and packaging capabilities. The U.S. drugmaker said it would soon decide upon the future production unit’s country and location.
Legislative 
Parliamentary Committee for the exercise of control over SRI’s activity proposes legislative changes
The members of the Parliamentary Committee for the exercise of parliamentary control over the Romanian Intelligence Service (SRI)’s activity went on a working visit to Galaţi, to Moldova Sud Regional Intelligence Directorate of the Romanian Intelligence Service, with competencies in Galati (headquarters), Bacău, Brăila, Buzău and Vrancea Counties. Amid the talks, the SRI committee will propose legislative amendments through which mayors, prefects and county council presidents should benefit from information from Intelligence Services.
European News 
MEPs adopted a report to protect people with disabilities
Lawmakers in the European Parliament overwhelmingly adopted a report to protect people with disabilities on Wednesday, 6 October. MEPs agreed there is still a lot to be done as disabled people continue to face many barriers and discrimination across the bloc. The report, which originated from the Parliament’s petitions committee (PETI), was adopted with 579 votes in favor, 12 against and 92 abstentions.
Social 
Doctor Valeriu Gheorghiţă once more called on people in Romania to get vaccinated against Covid-19
Doctor Valeriu Gheorghiţă has once more called on the people in Romania to get vaccinated against Covid-19 and has pointed out that this is the only solution to overcome the fourth pandemic wave, which is so virulent due to the Delta variant and leads to thousands of new cases every day. Romania is currently in Italy’s situation in the first months of the pandemic, he said, referring to the fact that hospitals are overwhelmed by the number of Covid-19 patients. The doctor has added that the lifting of restrictions had contributed to the low vaccination rate.