News

Daily Newsletter - 8 September 2021

Summary

FIC (1)
Macroeconomic (3)
Financial (3)
Investment (2)
Legislative (1)
European News (1)
Social (2)
FIC 
Investments necessary for Romania’s energy transformation amount to EUR 70 billion
The investments necessary for Romania’s energy transformation amount to EUR 70 billion by 2030, according to the Foreign Investors Council (FIC), and transition in Romania must be made with the help of natural gas, Eric Stab, FIC Vice-President stated during the Romanian Energy Symposium - SIREN 2021, organized by CNR-CME. He believes that the development of biomethane "has huge potential" in Romania, which does not capitalize on its organic or household waste.
Macroeconomic 
Authorities will present a clear formula for calculating the minimum wage in economy
Authorities will present a clear formula for calculating the minimum wage in economy by the end of October, Prime Minister Florin Cîţu concluded after the meeting of the Tripartite National Committee for Social Dialogue, which had focused on the increase in the minimum wage in Romania. The current gross minimum wage in economy is RON 2,300, and Cartel Alfa National Trade Union Confederation proposed a RON 143 increase for 2022, up by about 10% compared to 2021.
Romanian economy grew by 1.8% in Q2/2021
Romanian economy grew by 1.8% in Q2/2021, compared to the previous quarter. Moreover, the Gross Domestic Product increased by 13% as a gross series and by 13.6% as a seasonally adjusted series in Q2 of 2021 year-on-year, according to provisional data published by the National Institute of Statistics yesterday. GDP grew by 6.5% as a gross series and by 6.2% as a seasonally adjusted series in H1 of 2021, compared to the same period of 2020. GDP data were not modified following the revision of estimates for the second quarter of 2021, compared to the "signal" version published by the INS on 17 August 2021.
The government has adopted the draft budget adjustment
The government led by Florin Cîţu, without the USR-PLUS ministers who submitted their resignations on Tuesday, 7 September, has adopted the draft budget adjustment. The draft stipulates, among other things, RON 4.5 billion allocations for the Health Ministry and RON 6.6 billion for investments. The Ministries of Health, of Development, of European Investments and of Transport will receive the largest sums, Prime Minister Florin Cîţu announced.
Financial 
BT CEO Omer Tetik and six deputy CEOs received a total of 1.44 million shares at the bank
Banca Transilvania (stock exchange symbol - TLV), the biggest credit institution in Romania, announced on Tuesday, at Bucharest Stock Exchange, that the CEO Omer Tetik and six deputy CEOs had received a total of 1.44 million shares at the bank within a stock option plan program and as a variable remuneration deferred from the stock option plan programs from 2018, 2019 and 2020. According to the calculations made based on the current trading price on 7 September, namely RON 3.01 per unit, the shares allocated to Banca Transilvania’s CEO and deputy CEOs are worth about RON 4.33 million.
Romanians contracted over RON 2.87 billion RON-denominated consumer loans in July 2021
Romanians contracted over RON 2.87 billion new RON-denominated consumer loans in July 2021, the highest monthly level of the past 14 years and 37.3% higher than the volume recorded in July 2020. Retail lending slightly recovered in the summer of 2020, after having declined sharply in the spring of 2020 due to the blockage generated by the state of emergency imposed amid the COVID-19 pandemic. In July 2020, the volume of RON-denominated consumer loans had exceeded RON 2 billion, after having even dropped below RON 1 billion during last year’s spring months.
BT announced on BSE it had concluded a service contract with Raiffeisen Centrobank AG
Banca Transilvania, the largest credit institution in Romania, announced on Tuesday, 7 September, at Bucharest Stock Exchange (BSE), that it had concluded a service contract regarding the Market Maker activity on the spot regulated market administered by BSE, with Raiffeisen Centrobank AG, Raiffeisen Bank’s brokerage division. The specific parameters applicable to the Issuer’s Market Maker activity carried out by Raiffeisen Centrobank for Banca Transilvania shares stipulate a minimum volume of 100,000 instruments, with a maximum spread between the purchase and sale prices of 1%.
Investment 
Fortech continues to invest in education, finance, transport, production and healthcare start-ups
Fortech continues to invest in start-ups in education, finance, transport, production and healthcare sectors. Fortech Investments, the new investment division launched by the software development company from Cluj-Napoca, wants to get even more involved in the technology sector, both at national and at international level. Three investments have already been made in start-ups in Romania, such as Licenseware or Telios, but also in a start-up in the United Kingdom, RacketPal, since its establishment up to present. The start-up analysis process lasts about ten days, on average, and consists of three stages, which a dedicated team of the division participates in, according to a press statement.
Medicover plans to invest EUR 4 million in imaging centers
The Swedes from Medicover, the third largest private player on the local healthcare services market, plan to invest EUR 4 million in imaging centers in four major cities in the country - Iaşi, Constanţa, Craiova and Bucharest. The investment will involve opening centers with nuclear magnetic resonance (MRI) and computed tomography (CT) equipment, investigations for which patients with a referral note currently have to wait even two months to benefit from the medical service in question. However, the main cause is the lack of specialized personnel in imaging centers, according to doctor Florinela Cîrstina, CEO of Medicover Romania.
Legislative 
Renate Weber to make a decision on "Anghel Saligny" program constitutional challenge
Ombudsman Renate Weber has stated that the Constitutional Litigation Service within the institution has started analyzing the Emergency Ordinance on the establishment of the "Anghel Saligny" investment program, and could make a decision regarding a possible challenge to the Constitutional Court by the end of this week. On Monday, 6 September, the NGO Expert Forum requested the Ombudsman, along with 17 other non-governmental organizations and civic groups, to notify the Constitutional Court on the constitutional challenge related to the Emergency Ordinance approving "Anghel Saligny" National Investment Program.
European News 
All USR PLUS ministers resigned from the government led by Florin Citu
All USR PLUS ministers submitted their resignations from the Romanian government on Tuesday, 7 September, meaning the government lost its majority in parliament. The party is nevertheless insisting it would like to remain in the coalition with PNL and UDMR, but with a different prime minister. USR PLUS no longer wants to continue working with Prime Minister Florin Citu after the latter had dismissed Justice Minister Stelian Ion last week On Friday, 3 September, USR PLUS filed a no-confidence motion against the government, with the help of nationalist party AUR.
Social 
Vaccination campaign in pre-university education system will start on 13 September
The vaccination campaign in the pre-university and university education system will take place over a period of two months. Vaccination will be carried out in schools during the period 13 September – 15 November, and in universities from October 1 to December 1, the president of the National Committee for the Coordination of Anti-Covid-19 Vaccination Activities (CNCAV) Valeriu Gheorghiţă announced, on Tuesday, 7 September. The head of CNCAV indicated that a "special campaign" would be carried out for the vaccination of pupils, their families, students, teaching and non-teaching staff in order to limit the risk of SARS-CoV-2 infection in the community, as well as in educational units.
Lack of financial resources and emotions management are among Generation Z’s challenges
The lack of financial resources (77%) and of financial education (60%), the lack of motivation (65%) and of career counseling (59%), but also fluctuating emotional states (49%) are the main challenges young people in Romania are currently facing, more than a year after the onset of the pandemic, according to the latest national study Insights PulseZ. The "Insights PulseZ" study, which has reached its second edition, was conceived and coordinated by the specialists of the national entrepreneurial programs "I want to be an Entrepreneur" (VSFA) and "Insights" - within the Romanian Business Leaders (RBL) organization, and was conducted by the market research agency IZI data, in July, among approximately 1,200 young people in Romania. The research focused on capturing the states of mind, behaviors, interests and desires of young people in Romania, in the new pandemic context, members of generation Z (those born after 1995, also known as iGeneration, Centannials or "digital natives"), in the past few months of this year (July 2021), compared to the 2020 wave (May-June 2020, when the first edition of the study had been conducted).