News

Daily Newsletter - 9 September 2022

Summary

FIC (1)
Macroeconomic (4)
Financial (4)
Investment (3)
Legislative (2)
European News (1)
Social (2)
FIC 
FIC launching event of the "Va urma" project with the participation of the Prime minister

FIC launched the 2022 edition of Va Urma (https://vaurma.ro) with the participation of the Prime Minister of Romania, Mr. Nicolae Ciuca, together with members of the Government and Parliament, international institutions, and economic leaders. The "Va Urma" project represents an economic development model with a vision for the next 20 years, updated to take account of the latest events at global level. The event was a first step in setting country directions agreed and supported by the authorities, representative international institutions, and the business environment. The participants agreed on ten long-term measures and several quick wins for boosting the future economy based on investments, energy mix, digitalization, human capital and institional capacity.

The Foreign Investors Council organized the launch event of the Va Urma project, the 2022 edition

FIC starts Next project

Foreign investors in Romania: Romania’s economy could grow another 4.5 times 

Foreign investors in Romania: Romania’s economy could grow another 4.5 times 

Gov’t to launch agency for foreign investments

The government will launch an agency dedicated to foreign investments, under the direct authority of the Prime Minister

Prime Minister Nicolae Ciucă: We will launch an operational and efficient agency dedicated to foreign investments

The government announces the launch of the Agency for Foreign Investments, under the direct authority of Prime Minister 

Nicolae Ciucă: "We are the Government that supports investments. We allocated the largest amount in the last 32 years"

Prime Minister Nicolae Ciuca: We will launch an operational and efficient agency dedicated to foreign investments 

Ciuca: Accession to Schengen and our reception in the OECD will increase the attractiveness of the country

Prime Minister Nicolae Ciucă: We will launch an operational and efficient agency dedicated to foreign investments that will be t

Prime Minister Nicolae Ciucă: "We are the government that allocated the largest amount for investments in the last 32 years"

Ciucă: The government will launch an agency dedicated to foreign investments that will function directly under the prime ministe
Ciucă: The accession to the Schengen Area and the reception of our country in the OECD will increase our attractiveness, but als

Nicolae Ciucă: "We are the Government that supports investments. We allocated the largest amount in the last 32 years"

Nicolae Ciucă: "We are the Government that supports investments. We allocated the largest amount in the last 32 years"

Foreign investors in Romania: Romania’s economy could grow another 4.5 times

Foreign investors in Romania: Romania’s economy could grow another 4.5 times 

RO Govt. to launch agency dedicated to foreign investors

Macroeconomic 
ECB has raised key interest rate by 75 basis points
On Thursday, 8 September, the European Central Bank raised its key interest rates by an unprecedented 75 basis points and promised further hikes, prioritizing the fight against inflation even as the bloc is likely heading towards a winter recession. Following up on a large July rate hike, the ECB raised its deposit rate to 0.75% from zero and lifted its main refinancing rate to 1.25%, the highest level for both since 2011, with moves promised for the next several meetings to take place in October and December.
Draft budget for 2023 will be sent to Parliament in November
Prime Minister Nicolae Ciucă stated on Thursday, 8 September, that the government would send the draft budget for 2023 to Parliament in November, as no decision regarding the increase in pensions had been made so far. The first vice-president of the National Liberal Party (PNL), Rareș Bogdan had said, several days before, that PNL wanted pensions to grow by 16% and that Finance Minister Adrian Câciu had the obligation to find the corresponding source of financing.
Ministry of Finance borrowed RON 1.081 billion from banks on Thursday, 8 September
The Ministry of Finance (MF) borrowed RON 1.081 billion from banks on Thursday, 8 September, through a benchmark government bonds issue and a discount certificates issue, according to data published by the National Bank of Romania (NBR). The Ministry thus raised RON 822.5 million through the issue of benchmark government bonds with 58-month residual maturity, at an average yield of 8.10% per year. The nominal value of the issue was RON 400 million and the banks subscribed RON 1.295 billion.
Three out of four companies in the world expect to growing sales in 2022 and 2023
Three out of four companies in the world expect to growing sales in both 2022 and 2023, according to the "CxO Priorities 2022" survey conducted up by management consultancy firm Horvath, a press release indicates. According to the cited source, the expectation is based on the fact that almost three-quarters of companies have managed to transfer the growing costs into the final prices of products and services. In Romania’s case, the optimism exceeds the average resulting from the survey, as 80% of companies expect growing sales in 2022 and 93% have similar expectations for 2023.
Financial 
BCR implements euro cash withdrawal at 100 ATMs across the country
Banca Comercială Română has announced that it will introduce the option of withdrawing cash in euros at 100 ATMs across the country, starting from September, and that more than 300 ATMs in the bank’s network will offer this facility by the end of the year. The cash withdrawal operation in euros is available for BCR debit card holders, natural entities, at the bank’s ATMs located both in Bucharest and in the other large cities.
Liquidity deficit on interbank market grew to a RON 12 billion daily average in August
Some banks with temporary liquidity deficit chose in August, the same as in the other summer months, to borrow from the National Bank of Romania (NBR) through overnight Lombard emergency loans, at an average interest rate that grew to 6.2% per year in August from 5.4% in July, instead of paying higher interest rates on deposits from the start to attract money from households and businesses. The liquidity shortage persisted on the interbank market in June, July and August, the same as in the spring months, having increased to a daily average of over RON 11.9 billion in August, up from RON 9.6 billion in July, yet below the RON 13.5 billion level recorded in June.
OTP Group has launched the fifth edition of the Startup Booster program
OTP Group has launched the fifth edition of its Startup Booster program and will partner with 12 technology start-ups which will be able to test their products and services within the bank’s branches in Ukraine, Bulgaria, Slovenia and Romania, as well as in the parent bank. The pilot phase, launched on 5 September 2022, will run until November 25. During the three months of cooperation, the selected teams will receive support from OTP Group members in Hungary and internationally, OTP LAB employees and professionally recognized mentors.
Raiffeisen Bank launches instant payments
Raiffeisen Bank, the fifth-biggest bank on the local market asset-wise, has officially joined the Transfond instant payments scheme, being the seventh bank to enrol in this system, according to the information provided by the bank. The instant service of interbank payments of less than RON 50,000 made to banks that are members of the instant payments scheme will be available to individuals in a first stage. In the following period, Raiffeisen Bank will also offer this service to legal entities. Banca Transilvania, BCR, CEC Bank, Libra Internet Bank, Vista Bank and Patria Bank are the banks that are already part of the instant payments system.
Investment 
Water infrastructure in Mediaș, Agnita and Dumbrăveni regions to be developed following investment
The European Commission has approved the financing for the “Regional project for the development of water and wastewater infrastructure in Mediaş, Agnita and Dumbrăveni regions”, in Sibiu County, a EUR 76.7 million investment (total eligible costs), supported from the 2014-2020 Cohesion Fund through the Large Infrastructure Operational Program (POIM). The project targets investments in the development of water and wastewater infrastructure in 19 administrative territorial units in Sibiu County, in order to increase the level of urban wastewater collection and treatment and ensure the supply of drinking water to the population, according to a press release issued by the Ministry of Investments and European Projects.
Cronos Med Group invested EUR 700,000 for the acquisition of a clinic in Iaşi
Cronos Med Group, the surgery and aesthetic medicine network founded by doctor Constantin Stan, has invested EUR 700,000 for the acquisition of a new clinic in Iaşi, as part of a plan to expand to several cities, after private equity fund Morphosis Capital, whose foundations were laid by four Romanian executives, had taken over the majority stake in November 2021. The Cronos Med business was founded in 1991 in Bacău by plastic surgeon Constantin Stan. Cronos Med also has three clinics and a hospital in Bucharest and Bacău.
Teilor invests EUR 2 million in an omnichannel shopping solution
Teilor, the luxury jewelry stores chain, whose bonds have been listed on Bucharest Stock Exchange, has invested EUR 2 million in the implementation of an omnichannel shopping experience, which included the launch of a new teilor.ro platform, and the implementation of an ecosystem for customers shopping online and in-store. In addition, the company has announced that it has launched the buy now, pay later online option on the local market, allowing customers to purchase products in installments, interest-free, from the website directly.
Legislative 
Senate adopted draft law amending the "Croissant and Milk in Schools" school feeding program
The only school feeding program with national coverage in Romania could be improved after a draft law was submitted to the Senate by MP Cătălin Teniță. The draft law stipulates an increase in the number of portions of dairy products, bakery products, fruit and vegetables that school children would receive. The proposed changes target the return to the distribution of 5 portions per child per week of milk and dairy products, fruit and vegetables, fresh bakery products, consumed within 24 hours from their production, diversified products, provided on a distribution chain accessible to micro enterprises and local producers, according to the initiator.
OUG establishing the legal framework for the launch of transport projects has been adopted
The government has approved a Government Emergency Ordinance (OUG) regarding some measures targeting transport infrastructure projects, projects for the development of integrated waste management infrastructure, projects aimed at improving the risk response system and projects regarding investments in hospital infrastructure, financed from non-reimbursable external funds, as well as for amending certain normative acts, according to a press release. The draft emergency ordinance stipulates the possibility of including the necessary commitment and budgetary appropriations for projects under the Transport Program, the Sustainable Development Program and the Health Program into the Transport and Infrastructure Ministry and the Investments and European Projects Ministry’s budgets.
European News 
Several EU neighbors to be invited to new EU+ summit in October
Next to the six Western Balkans countries, several countries from the EU’s near neighborhood should be among the non-EU countries invited to attend the first EU summit of the European Political Community next month, an EU official said on Wednesday (7 September). The first summit meeting of the new EU-plus forum is to take place in Prague, as the Czech Republic currently holds the rotating EU presidency, just ahead of an informal meeting of EU leaders on 7 October.
Social 
European Funds Ministry announced calls for projects for Romanians’ integration onto labor market
The Ministry of Investments and European Projects (MIPE) announced on Wednesday, 7 September that it had put up for public consultation the guidelines for three calls with a total allocation of EUR 117 million, aimed at supporting vulnerable groups’ integration onto the labor market. The timetable for this call for projects was approved during the Government meeting on Wednesday, 7 September. The call will be launched on 20 September, applications can be submitted between 20 September and 20 October and the contracting of projects is scheduled to take place on 5-30 December.
More than 8 out of 10 Romanians believe improving energy performance of buildings is very important
More than eight out of ten participants in a survey conducted by Reveal Marketing Research and "Romania Eficientă" believe that improving the energy performance of buildings is a very important initiative that helps reduce energy use in the long term. Hospitals (88%) and schools (86%) are considered the main public buildings that need to be made energy efficient, according to a press release. The aforementioned survey also indicates that the reduction of energy costs is the most popular advantage of living in an energy-efficient home for 67% of Romanians.