Daily Newsletter - 9 November 2021


Macroeconomic (3)
Financial (3)
Investment (3)
Legislative (1)
European News (1)
Social (2)
Romania’s net coal production grew in the first eight months of 2021
Romania’s net coal production stood at 2.118 million tons of oil equivalent in the first eight months of 2021, up by 22.9% (394,800 toe) against the similar interval of 2020, according to data centralized by the National Institute of Statistics (INS). During the aforementioned period, Romania imported 295,500 toe of net coal, 39,100 toe (15.2%) more than the quantity imported in the similar period of the previous year. The National Commission for Strategy and Prognosis (CNSP) has estimated a coal production of 3.020 million toe for 2021, up by 9.9% year-on-year, and imports of 370,000 toe, down by 12.1%. Moreover, CNSP has forecast 2.935 million toe production (-2.8%), and 270,000 toe imports (-27%) for 2022.
Euro zone inflation will ease next year
Euro zone inflation will ease next year and remains too weak in the medium term, European Central Bank chief economist Philip Lane stated on Monday, 8 November. The specialist also indicated that high price growth was temporary. Under these circumstances, European Union finance ministers are to meet on Monday, 15 November, to discuss the increase in consumer prices, the impact on wages and changes in the community bloc’s budget regulations to support investments and reduce debt.
Government borrowed RON 95 billion in the first ten months of 2021
The Government borrowed RON 95 billion in the first ten months of 2021 through the sale of government securities to large investors and the population, less than 7% of the amount having come from the Tezaur and Fidelis programs through which authorities borrow from the population directly. RON 886 million from external loans from international institutions (EBRD or the World Bank, for instance) adds to this sum. The total thus amounts to RON 95.9 billion. The gross financing necessary for this year amounts to RON 135 billion, according to the Ministry of Finance.
The National Bank of Romania will have a new monetary policy meeting on Tuesday, 9 November
Central banks in Poland and the Czech Republic have increased key rates above expectations in response to the rapidly rising inflation. In Romania, inflation has also exceeded the forecasts by far. Some analysts believe it could even reach 8% by the end of the year, and the National Bank of Romania (NBR) must raise the monetary policy rate during Tuesday’s meeting unless it wants to lag behind and increase pressure on the exchange rate. These evolutions will also reflect themselves in higher loan instalments. NBR will most likely increase the key rate from 1.5% to 2% on Tuesday.
CEC Bank reported a preliminary net profit of RON 332.4 million for the first nine months of 2021
CEC Bank has reported a preliminary net profit of RON 332.4 million for the first nine months of 2021, up by 21.2% year-on-year. Moreover, the bank recorded advances on all activity segments; as a result, the value of assets grew by 20.5% compared to September 2020, to RON 45.1 billion, according to the information transmitted by the bank. The total portfolio of loans granted to non-banking clients amounted to RON 25.83 billion at the end of September 2021, up by 15.1% against September 2020.
Utility bills can be paid through the BT Pay app
BT Pay, the first banking and payments super-app in Romania, has a new option, called Bill Payments, according to a press release issued by Banca Transilvania. The new facility simplifies bills management, allows bills payment both by connecting to suppliers’ accounts and by scanning the bills. Clients will be able to see the due bills and the history of payments inclusively in the application. Over 1 million utility bills have been paid per month through Banca Transilvania - through BT24, NeoBT, ATMs, ATMs and the Direct Debit service, this year.
Holde Agri Invest will make a new investment in the agritech sector
Holde Agri Invest, a Romanian company exploiting agricultural land, has announced a new investment in the agritech sector through the acquisition of a stake in Enten Systems, an agriculture technology company. The value of the transaction amounts to RON 370,000, of which approximately RON 247,000 was used for the acquisition of a minority stake, and RON 123,000 represents financing that can be converted into shares.
BD Lemntech has invested EUR 1 million in a high-tech wood finishing line
BD Lemntech, a company with 100% Romanian private capital, has invested EUR 1 million from its own sources in a high-tech finishing line, thanks to which the speed and quality of the production process will increase, the range of finishes will be extended, costs will be reduced and a new business model will be proposed, according to a press release. The necessary premises for reaching a RON 40 million turnover at group level at the end of 2022 will thus be created, which would represent a 30% advance, according to the company’s representatives.
Eden Capital Development will invest EUR 25 million in 172 luxury apartments
Eden Capital Development, one of the most dynamic developers of residential projects in Bucharest, will invest about EUR 25 million in the Cortina126 complex, located at 126F Erou Iancu Nicolae Street, near Jolie Ville and Cambridge School of Bucharest, whose construction has already started and which will include 172 luxury apartments, according to a press release. Works on the project’s foundation are currently carried out, on the land with an area of 5,500 square meters.
A new amendment was proposed for Government Emergency Ordinance no. 114/2018
The contributions applied for cigarettes, cigars and alcoholic beverages at national level - generally known as the "vice tax" - will be entirely transferred to the Health Ministry’s budget, according to a recently initiated draft law. The USR PLUS MPS who initiated the mentioned project claim that the public healthcare system in Romania is underfunded, being allocated less than 6% of GDP, half the European Union average.
European News 
Attracting or developing semiconductor manufacturing capabilities in Europe is essential
A new discussion paper, issued by the German Electrical and Electronic Manufacturers’ Association (ZVEI), on Thursday, 4 November, said that the return of semiconductor manufacturing capabilities to Europe was key for the technological sovereignty of Germany and Europe as a whole. Digital industries welcomed the European Commission’s announcement of the Chips Act that aims at making Europe more resilient to external supply shocks, but warned that the strategy should not be driven by political imperatives alone. The ZVEI report warns however that existing public funding mechanisms should be improved and the pace of project approval should be accelerated.
The National Patient Safety Council has called for a legislative package to include clear rules
The National Patient Safety Council has called for a legislative package to include clear and applicable rules, which should guarantees patients’ access to the fastest and best solutions for them, under the current circumstances. The Council has also called on healthcare units and relevant authorities to accurately identify the needs and how the latter can be met to enhance patients’ safety and access to care and therapy, to maintain or improve their condition in the case of chronic diseases, as well as to prevent the deterioration of their condition or fatal evolutions, including through prophylactic treatments, in the case of acute conditions, primarily in the case of infection with the SARS-CoV-2 virus.
The number of beneficiaries of statutory maternity pay decreased by 0.67% in September
174,650 people benefited from statutory maternity pay in September, down by 0.67% compared to August, when 175,820 people had received this type of social assistance. In September, 13,174 beneficiaries were suspended from payment, 2.8% more than in the previous month (12,813), according to data centralized by the National Agency for Payments and Social Inspection (ANPIS). The statutory maternity pays granted in September 2021 amounted to RON 422.152 million.