Daily Newsletter - 9 November 2022


FIC (2)
Macroeconomic (4)
Financial (3)
Investment (3)
Legislative (4)
European News (1)
Social (2)
FIC event on waste management with the Minister of Environment

FIC organized the event with authorities and decision-makers regarding the main conclusions of FIC analysis on waste management and possible measures for improvement. FIC document is the result of the consultation with the most relevant sectorial associations in the domain of waste management. We had the pleasure to discuss with: Paris Nikolopoulos, Co-chair of FIC Environment Task Force (General Manager, Coca-Cola Romania); Barna Tánczos, Minister of Environment; Adrian Nicolae Raulea, State Secretary, Ministry of Investment and European Projects; Ionel Tescaru, President of the National Regulatory Authority for Community Public Utility Services; Andrei Antipa, Vicepresident, the Administration for the Environmental Fund; Florin Bănică, Deputy Commissioner-General, the National Environmental Guard; Adrian Haralambie Bidu, Vicepresident, the National Agency for Environmental Protection; Oana Ozmen, Member of the Committee on Industries and Services, Chamber of Deputies, the Romanian Parliament; Stelian Matei, Senior Advisor, Department for Sustainable Development of the Government of Romania; Roxana Ionescu (NNDKP) and Ovidiu Balaceanu (Deloitte), Coordinators of the FIC working group on Waste Management. The following organizations were part of the consultation process: AMRCR (Asociatia Marilor Retele Comerciale din Romania), Asociația Națională pentru Băuturi Răcoritoare, Asociatia Romana pentru Ambalaje si Mediu (ARAM), Asociația Berarii României, Asociația OIREP Ambalaje, CleanRecycle, Green Resources Management, ARCwaste Collection, Organizatia ECOTIC, Environ, Reverse Logistics Group (RLG) Romania, SNRB, RER Group, Uniunea Nationala a Transportatorilor Rutieri din Romania (UNTRR), Circular Economy Coalition - CERC, CIROM.

FIC event on waste management

The Minister of the Environment, on waste management: "We need to educate the population"

Tanczos: The development of separate collection infrastructure is the starting point for better waste management

TANCZOS BARNA: "The development of separate collection infrastructure is the starting point for better waste management"

Tanczos Barna: The development of separate collection infrastructure is the starting point for better waste management

FIC concluded the third edition of "Leaders for Excellence in Healthcare" project 

The commitment of the Foreign Investors Council (FIC) taken since 2013 to support the Romanian medical system continues through the project “Leaders for Excellence in Healthcare” (LEH), which consists of courses dedicated to the medical personnel from the top management of hospitals in Romania. FIC finalized the third edition of the project “Leaders for Excellence in Healthcare”, which was organized between 13 – 28 October 2022. The participants had the opportunity to learn new information from areas of interest, interact with lecturers, share common experiences, find solutions and answers to some problems they face in their activity. 70 participants from 50 hospitals in Bucharest and in the country, both large hospitals and smaller hospitals with various specialties participated in “Leaders for Excellence in Healthcare” 2019-2022.The project was organized by the FIC in partnership with the Ministry of Health of Romania, Maastricht University School of Business and Economics and Sheffield Hallam University and with the support of the Ministry of Investments and European Projects, the Health Commissions of the Romanian Parliament (Chamber of Deputies and Senate), the Presidential Advisor for Public Health, Dr. Diana Paun, and Ambassador of the Kingdom of the Netherlands to Romania, E.S. Roelof van Ees (Embassy of the Kingdom of the Netherlands in Romania).

FIC has finalized the third edition of the project dedicated to trainings for medical staff in management positions

FIC has finalized the third edition of the project dedicated to trainings for medical staff in management positions

Retail trade turnover grew by 4.5% in the first nine months of 2022
Retail trade turnover (which closely approximates the evolution of private consumption - the main component of GDP) grew by 4.5% in the first nine months of 2022 compared to the same period of last year, although its advance slowed down (from 4.8% in the first eight months of 2022), according to data from the National Institute of Statistics (INS). Fuel sales (which increased by 9.2%), followed by non-food products (+4.3%) and sales of food, beverages and tobacco (+3.7%) were the growth drivers.
Annual inflation rate is expected to grow moderately and then enter a gradual downward trend
Annual inflation rate is expected to grow moderately towards the end of this year and then enter a gradual downward trend and to fall to single-digit levels in the first half of 2024, according to the National Bank of Romania. NBR, however, has also indicated that the escalation of the war in Ukraine and the increasingly severe sanctions associated with it generate considerable uncertainties and risks to the outlook of economic activity, hence to the medium-term evolution of inflation, through possible bigger effects on purchasing power and consumer trust, as well as on companies’ activity, profits and investment plans, but also through the potentially more severe impact on the European/global economy and on risk perception in economies in the region, with an adverse effect on financing costs.
Latest data and analyses point to a quasi-stagnation of economic activity in Q3 and Q4 of 2022
The latest data and analyses point to a quasi-stagnation of economic activity in Q3 and Q4 of 2022, under the impact of the escalating war in Ukraine and the extension of associated sanctions. Compared to the same period of 2021, however, GDP is likely to grow considerably in Q3, amid a base effect, yet with decelerating private consumption growth. The significant year-on-year decline recorded by retail trade in July-August, but especially by household services, is relevant in this respect, being only slightly offset by the slight recovery of automotive trade.
Investor confidence regarding economic activity in euro area has grown above expectations
Investor confidence regarding economic activity in the euro area has grown above expectations in November 2022, according to the latest report published by Sentix GmbH. The overall index has increased by 7.4 points compared to the previous month, to -30.9 points, considering that the expectations index rose by 8.7 points, to -32.3 points and the current conditions index was up 6 points, to -29.5 points. These values, however, do not point to a reversal of the negative trend, as the aforementioned report indicates.
NBR has increased the key rate by only 0.5%, to 6.75%
On Tuesday, 8 November, during the eighth and the last monetary policy meeting of 2022, the National Bank of Romania (NBR)’s Board of Directors decided to increase the monetary policy interest rate to 6.75% per year, from 6.25% per year, and to raise the lending (Lombard) facility rate to 7.75% per year, from 7.25% per year as of 9 November. NBR also increased the deposit facility rate to 5.75% per year, from 5.25%, and decided to maintain firm control over money market liquidity.
ProCredit Bank increases interest rates on RON- and euro-denominated deposits
ProCredit Bank, a growth-oriented digital bank, has increased interest rates on RON- and euro-denominated deposits. Individual clients who open one-year term deposits will benefit from an interest rate of 8.6% for deposits in RON and of 2.6% for those in euro. ProCredit Bank is currently among the banks that offer the highest interest rates for twelve-month term deposits, both RON- and euro-denominated ones.
EximBank has provided financing to Trencadis
EximBank and the company Trencadis from Baia Mare, which specializes in the provision of IT integration solutions and services, have concluded a RON 60 million financial agreement, a facility that will be used to finance expenses related to the contract for the EDULIB educational platform. At the end of 2021, Trencadis was designated as the winner of the tender for EDULIB - the national digital platform with educational resources, in a consortium with several IT&C companies.
Borsec spa center will re-open following EUR 9 million investments
The spa center in Borsec resort, which has been closed for more than a decade, is to re-open on 15 December. The total investment in the center amounts to EUR 9 million. The money came from the Ministry of Development and from Harghita County Council. The spa center comprises a spa and a treatment center, with an area of 2,900 square meters and a capacity of 1,000 people per day in the summer season and 700 people in winter.
Michelin invests EUR 1.2 million in photovoltaic panels
Michelin Romania has launched a nearly EUR 1.2 million project which consists of building a photovoltaic park in Zalău, where the French company owns a tires plant. The company has accessed the grant from Iceland, Liechtenstein and Norway through the EEA and Norwegian Financial Mechanism 2014-2021, within the <<Romania Energy Program>>, for the project "Photovoltaic power plant for own consumption" to start at the beginning of 2023.
BigBags reports EUR 2 million investments in new machinery
Paper packaging manufacturer BisBags recorded 30% organic growth in the first nine months of 2022 compared to the same period of last year, according to a press release. The company has invested RON 1.5 million in new machinery to manufacture more types of paper packaging and expects growing e-commerce sales through its own online platform, According to the cited source, the estimated turnover for 2022 is EUR 6.25 million, up by 25% against 2021, when the company had reported EUR 5 million revenues.
Public sector employees’ salaries could grow by up to 50%
An emergency ordinance recently put up for consultation at the Ministry of Labor stipulates a 50% increase in salaries of locally elected officials working on the implementation of projects included in the National Recovery and Resilience Plan (PNRR). As a result, a director in a ministry could earn up to RON 7,800 more that at present. Basic salaries will grow by up to 50%, regardless of the number of projects officials are involved in, according to the draft law.
Local police will be able to ask drivers for identification data
During the plenary session on Tuesday, 8 November, the Chamber of Deputies adopted a draft law that gives local police the power to ask the owners or authorized keepers of vehicles for the identification data of persons they have entrusted the vehicles to. In case the requested information is not provided, local police officers will be able to record offences and impose appropriate penalties.
Tips will be mentioned on both a payment slip and on the fiscal receipt as of 1 January 2023
The tip will be mentioned on both a payment slip and on the fiscal receipt starting from 1 January 2023. The sums obtained from tips will be distributed in full to employees, and the money from this source will be considered income with tax withheld at source, without being included in the calculation basis of social security contributions and without falling within the scope of VAT, according to the draft law for which the Parliament’s Budget Committee has drawn up an adoption report, indicates. The final decision in this case belongs to the Chamber of Deputies.
Draft law on energy sector decarbonization has been adopted
On Tuesday, the Chamber of Deputies adopted, with 55 votes in favor, 44 votes against and 37 abstentions, the draft law approving Government Emergency Ordinance (OUG) 108/2022 on the decarbonization of the energy sector, which regulates the closing and conservation of lignite and hard coal power plants, the closing of lignite quarries and hard coal mines, as well as support measures for the closing and conservation of lignite and hard coal power generation units. The leader of Social Democratic (PSD) deputies, Alfred Simonis stated, during the plenary session, that following the current government’s negotiations with the European Commission, all those mines would no longer close in 2023 and 2024, but would close in 2026, 2030, even 2032 some of them. The Chamber of Deputies is the decision-making body; as a result, the draft law will be sent to the head of state for promulgation.
European News 
EU signs strategic partnership with Kazakhstan on green hydrogen and raw materials
As UN climate talks kicked off in the Egyptian resort city of Sharm El-Sheikh, the European Union is moving forward to secure partnerships with developing countries on hydrogen and clean technologies, starting with Kazakhstan. In its REPowerEU plan presented in May, the European Commission set out an objective to produce ten million tons of renewable hydrogen in Europe and import the same amount by 2030. And it is now moving forward to secure these supplies. At the COP27 conference in Egypt on Monday (7 November), Commission President Ursula von der Leyen signed a Memorandum of Understanding with the Prime Minister of Kazakhstan Alikhan Smailov establishing a "strategic partnership" between the two sides.
Romanians working abroad sent EUR 4 billion to relatives at home in first eight months of 2022
Romanians working abroad sent over EUR 4 billion to relatives at home in the first eight months of 2022, more than in the same period of 2021. While most of the money initially came from Germany and the UK, the situation has currently been reversed. The latest data show that Romanians in Great Britain have sent nearly EUR 900 million home in 2022, and the Romanian community there keeps growing. 16,000 Romanian babies were born in the UK last year alone, according to the Foreign Affairs Ministry.
A quarter of Romanians plan to reduce indoor temperatures
Most Romanians are worried about the evolution of energy prices and almost a quarter of them plan to reduce the average indoor temperature, according to a survey commissioned by Resideo, a global provider of home comfort and security solutions. The study indicates that rising energy bills are a real source of concern; 95% of respondents in Romania said they were "worried" (36%) or "very worried" (59%) about the growing energy costs.