News

Daily Newsletter - 9 June 2022

Summary

FIC (1)
Macroeconomic (4)
Financial (4)
Investment (4)
Legislative (4)
European News (1)
Social (2)
FIC 
Prime Minister announces the signing of a collaboration agreement with CDR representatives

Prime Minister Nicolae Ciucă announced on Wednesday, 8 June that the Government had signed a collaboration agreement with the representatives of the Coalition for Romania’s Development and pointed out that, during the six months of governing, authorities had taken "correct and timely decisions to protect economy and citizens from the effects of crises". The Coalition for Romania’s Development (CDR) is a private, non-political initiative made up of the most representative business organisations in Romania, whose aim is "to provide a coherent basis for consultation with the Government and other public institutions on issues impacting on the economic and business climate" in Romania, according to the Coalition’s website.

The Prime Minister announces the signing of a collaboration agreement with the representatives of the CDR

Prime Minister Ciuca announces the signing of a collaboration agreement with the representatives of the CDR

The Prime Minister announces the signing of a collaboration agreement with the representatives of the CDR

The Prime Minister announces the signing of a collaboration agreement with the representatives of the CDR

Nicolae Ciucă announces the signing of a collaboration agreement with the Coalition for the Development of Romania

Prime Minister Ciuca announces the signing of a collaboration agreement with the representatives of the CDR

Macroeconomic 
The 6.5% economic growth recorded in Q1/2022 was supported by household consumption
Household consumption was the main driver of the 6.5% year-on-year GDP growth in Q1 of 2022, followed by the expenditure for public administration’s final consumption, according to data published by the National Institute of Statistics (INS) on Tuesday. Household consumption thus increased by 7%, having contributed 4.4% to GDP growth. Moreover, expenditure for public administration’s individual final consumption, whose volume rose by 7.5%, contributed 0.6% to GDP growth, and public administration’s collective final consumption, whose volume was up by 7.9%, contributed 0.9% to GDP growth.
War will lead to higher inflation and lower economic growth by 2023
The war in Ukraine has made the growth outlook far bleaker even though the global economy should avoid a bout of 1970s-style stagflation, the Organization for Economic Co-operation and Development (OECD) warned on Wednesday. The Paris-based organization expects global economy to grow by 3% in 2022, well below the 4.5% forecast from December. In 2023, growth is expected to further slow down to 2.8%, from the previous forecast of 3.2%, according to the OECD report.
Ireland and Romania recorded the highest economic growth in EU in Q1/2022
The European Union’s Gross Domestic Product grew by 0.7% in the first three months of this year compared to the previous quarter, but Ireland and Romania recorded the most significant advance, according to data published by the EU Statistical Office (Eurostat) on Wednesday. Euro area’s Gross Domestic Product was up by 0.6% in Q1/2022 compared to Q4/2021. During the same period, the US Gross Domestic Product decreased by 0.4%. EU and euro area’s GDP had increased by 0.5% and 0.2% respectively in Q4 of 2021, compared to the previous three months.
The Sentix economic index in the euro area grew considerably in June 2022
The Sentix economic index in the euro area grew considerably in June 2022 after three consecutive declines, according to the latest report published by Sentix GmbH. The value of the overall index increased by 6.8 points, to -15.8 points, as the expectations index rose by 10 points, to -24 points, and the euro area current situation index was up by 3.2 points, to -7.3 points.
Financial 
Aegon Romania ended 2021 with RON 153.4 million gross underwritten premiums
Aegon Romania, part of the international financial group Aegon, ended 2021 with RON 153.4 million gross underwritten premiums, up by 14.09% year-on-year, and with a 4.73% market share. Aegon maintained its position among the top six life insurance companies in Romania following the increase in the volume of premiums, according to data transmitted by the institution’s officials on Wednesday. In 2021, the company granted RON 33.74 million total benefits and compensations to clients, and the average time needed to settle claims was 1.1 working days.
BCR has increased interest rates on short-term RON-denominated deposits to 4%
Banca Comercială Română has increased interest rates on RON-denominated term deposits opened online by individuals to 4.2%. Within the same offer, an interest bonus is granted to all those who choose to cash their income (salary or pension) into a BCR account, upon opening a deposit through George – BCR’s Internet Banking or Mobile Banking platform. The offer applies to newly opened deposits in George and to those that are extended during the period 3 June - 30 September 2022.
Credit Europe Bank Romania has launched Avantaj SoftPOS
Credit Europe Bank Romania meets the need for digitalization of businesses in Romania and introduces Avantaj SoftPOS, the app that offers merchants a fast and secure way to cash sums from the mobile phone directly. The bank’s merchant clients can now turn any Android smartphone into a POS terminal with this service offered in Romanian and English. The app can be rapidly obtained from Google Play by merchants who choose to become the bank’s clients and ensures a fast and easy payment experience for both clients and merchants.
TBI Bank has launched a new five-year deposit with 10% record interest rate
Rising prices continue to reduce Romanians’ purchasing power and the growing inflation continues to erode their savings. To help clients protect their money and obtain real positive returns, TBI Bank has launched a new five-year deposit with 10% interest. Moreover, the bank has upgraded all interest rates on RON-denominated deposit, targeting clients who prefer short- and medium-term maturities as well. The record interest offered for the new maturity and the updated interests on existing deposits are meant to support TBI Bank’s promise to clients to be the best place for their savings.
Investment 
Qmed opens new dental clinic following a EUR 150,000 investment
The network of multidisciplinary dental clinics Qmed has opened a second clinic in the town of Popesti-Leordeni, following a EUR 150,000 investment. The Qmed network has thus reached 5 dental clinics, which provide full dental services at affordable costs to inhabitants of Bucharest and Popești-Leordeni. The new Qmed clinic in Popești-Leordeni is equipped with latest generation medical equipment, which facilitates correct diagnosis and successful dental treatments.
Romanian retailer Vagabond Studio to open its first store in London
CBRE Romania, the leader of the real estate consultancy market, has secured its first location for Romanian retailer Vagabond Studio, in one of the biggest shopping centers in London, under the "Made by Society" brand. Vagabond Studio is the first Romanian retailer to enter the British market assisted by a Romanian real estate consultant, following an approximately EUR 800,000 investment, according to a press release issued by the company.
Silicon Valley’s HTEC Group enters Romanian market following USD 140 million investment
HTEC Group, a technology, consultancy and software services company founded in Serbia and headquartered in the United States of America, announced on Wednesday that it would enter the Romanian market and would create up to 1,000 new jobs in Bucharest, Cluj-Napoca, Timișoara and Iași. In Romania, HTEC Group is actively recruiting at all levels of seniority, attracting engineers, developers, project and product managers, designers, experts, business and HR consultants. At the beginning of this year, the group secured a USD 140 million investment from Brighton Park Capital, an investment firm headquartered in Greenwich.
Regina Maria Network has bought Muntenia Hospital in Pitesti
Regina Maria private healthcare network has added Muntenia Hospital in Pitesti, founded and managed by SIF Muntenia up to present, to its portfolio. The acquisition, whose finalization is subject to the Competition Council’s approval, completes the healthcare services offered in the region, providing patients with an integrated medical circuit. Over the past ten years, Regina Maria has invested nearly EUR 200 million in the development of the healthcare system in Romania, by modernizing or opening new units, by purchasing highly-performing equipment and by training medical teams.
Legislative 
Government will also be able to issue ordinances during parliamentary recess
On Wednesday, the Chamber of Deputies adopted the draft law authorizing the Government to issue ordinances during the parliamentary recess. The draft law regulates the Government’s authorization to issue ordinances in areas not covered by organic laws, from the end of the first ordinary session of 2022 until the Parliament’s works are resumed in the second ordinary session of 2022.
Draft law introducing voting at 16 has been tabled in the Senate
The draft law allowing people to vote in local and European Parliament elections starting from the age of 16 was signed by Senate President Florin Cîțu and PNL Vice-President Alina Gorghiu. The document was submitted in Parliament in April, upon the proposal of Political Sciences students. The initiator is the non-affiliated MP Alexandru Kocsis, and the former Minister of Education and current chair of the Senate’s Education Committee, Monica Anisie joined the initiative, having registered the legislative proposal with the Senate, according to the Constanta Students’ Association.
Draft law on the integration of pupils from the Diaspora into the system was voted on
The draft law submitted by Save Romania Union (USR) deputies Simina Tulbure and Oana Țoiu, targeting the integration of students from the Diaspora into the Romanian education system, was unanimously voted in the Chamber of Deputies on Wednesday, according to a press release issued by the party. The draft law aims to support students and their families who were part of the Romanian Diaspora, as well as teachers who teach students who previously went to school in another country.
People with final criminal convictions can no longer participate in presidential elections
During the plenary session on Wednesday, 8 June, Romanian MPs adopted a legislative proposal establishing a ban on the participation in presidential elections for people who were convicted of a criminal offence at the time of their candidacy, Agerpres reports. The legislative proposal amending and completing Law 370/2004 on the election of the President of Romania, was adopted with 223 votes in favor, one vote against and 22 abstentions.
European News 
EU sets better gender balance in European corporate boards
EU lawmakers on Tuesday (7 June) agreed on a continental target to establish better gender balance on the boards of companies in Europe. Negotiators from the EU member states and European Parliament said they found common ground on a proposal that was first made by the European Commission, the EU’s executive, in 2012.
Social 
The value of food vouchers has increased to RON 30
On Wednesday, the Chamber of Deputies voted on a draft law increasing the value of food vouchers from RON 20 to RON 30. The vote cast during the Chamber of Deputies’ plenary session is decisive, after the draft law has already passed the Senate. The increase in the value of food vouchers had been decided by the ruling coalition at the beginning of 2022, but the law still needs to be promulgated by President Klaus Iohannis in order to enter into force.
Children’s allowances paid by the Romanian state in April 2022 totaled RON 1.034 billion
Children’s allowances paid by the Romanian state in April 2022 totaled RON 1.034 billion, the average amount paid having been of RON 282.14 per beneficiary, according to data centralized by the National Agency for Social Inspection and Payments (ANPIS). 3,665,411 children benefited from this aid in April, most of them in Bucharest (364,210) and in Iași (192,124), Suceava (138,115) and Constanța (129,112) counties. The highest average sums were paid in the counties of Botoșani – RON 289.69, Caraș-Severin - RON 287.72 and Alba - RON 286.42.