The Business Week in Romania 05.12 - 09.12.2016

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MACRO

·     Romanian online retail grows threefold in the last five years

Turnover from Romanian e-commerce has grown from 1.68 bn. Lei in 2011 to 5.47 bn. Lei in 2015, against the backdrop of developing online retail services, provided by more than 5.300 companies, more than 2.600 compared to five years ago, according to data provided by KeysFin, a company that provides business and credit management information services for the business sector.

·     150km of motorway for 2017

One hundred and fifty kilometres of motorway might be unveiled next year, with work on 117 kilometres at a very advanced stage, according to Minister of Transport Sorin Bușe. “There will be just 18 kilometres this year. More than that was not possible. Next year there will be 150 kilometres. I have counted them and confirmed them myself,” said Bușe.

·     Inter-ministerial committee for adoption of the single currency

The Government has passed a decision to set up an Inter-ministerial Committee for transition to the Euro, which will be chaired by the Prime Minister. The vice-chairmen will be the Minister of Public Finance and the Governor of the National Bank of Romania.

·     Ministry of Finance wants to modify First Home programme

The Ministry of Public Finances wants to amend “First Home” legislation in order for the 2017-21 strategy recently adopted by the Government, which stipulates stimulation of purchasing of homes less than five years old, will be able to enter into effect from 1 January 2017. Regulations will be introduced whereby the state guarantees 50% of the value of loans for the purchase of new and/or consolidated homes, and for homes that do not fall within this category the state will guarantee 40% of the loan.

·     PwC: Romanian employees are more profitable

Romanian employees have become more profitable in the last year, given that the “average human capital profitability” index, which reflects the profit generated by an employee/Leu received in wages, has increased by 12.5% in the last year, according to a study published by PwC Romania. The study shows that the average Romanian employee produces a profit of 1.44 Lei per each 1 Leu received in wages. The study also shows that the number of resignations has increased significantly, against the backdrop of increased employment opportunities in Romania.

·     A.N.A.F. to represent Romania in O.C.D.E. transparency group

The National Fiscal Administration Agency (A.N.A.F.) will, from 1st January 2017, be part of the Global Forum for Transparency and Exchange of Fiscal Information, part of the Organisation for Economic Co-operation and Development (O.C.D.E.), of which Romania has become a full member. The Forum unanimously voted to admit Romania to the O.C.D.E.

Sources: Economica.net, News.ro, Agerpres, Mediafax

 

BUSINESS 

·     30% increase in assets administered by O.T.P.

O.T.P. Asset Management, the investment funds administration division of the Romanian branch of Hungarian O.T.P. Bank, recorded a thirty per cent increase in the assets it administers in 2016, reaching the figure of 620,000,000 lei (137,700,000 Euros), in a context in which investors’ attention is still mainly focused on bonds, and the value of assets administered by investment funds has increased more than thirty two times in the last ten years.

·     Flats 8% dearer than last year

The average price of flats on sale nationwide has risen slightly, from 1,042 Euros/sqm in October to 1,044 Euros in November, an increase of 0.2%. The current average price is 8.3% higher than in the same period last year, when it was 964 Euros/sqm. Most major cities saw a decrease in price, with the exception of Cluj and Trimișoara, where the twelve-month increase was more than 10%.

·     Otopeni airport crosses ten-million passenger threshold

The Henri Coandă International Airport, Romania’s largest, is on the cusp of surpassing the ten-million passenger threshold this year, according to the Bucharest Airports National Company (C.N.A.B.), which administers Bucharest’s two airports. The airport in Otopeni will enter a whole new level, leaving behind the five to ten million passengers per annum category, in which it has fallen for the last few years. The Henri Coandă International Airport has the fourth largest annual passenger growth in Europe, growing by seventeen per cent in the first eight months of this year to reach 7,138 mil. passengers.

·     Enel Distribution Muntenia becomes E-Distribution Muntenia

Enel Distribution Muntenia, a member company of the Enel Group, which manages electricity distribution networks in Bucharest and Ilfov and Giurgiu counties, has changed its name to E-Distribution Muntenia. According to a company press release, the change of name is aimed at aligning the distribution operator with E.C. and national regulations, which demand that integrated firms in the energy sector should, from the legal, operational and accounting standpoint, keep their supply and production activities separate, a requirement that also includes a separate name and visual identity.

The requirement is aimed at preventing confusions on the part of the consumer and thereby stimulates market competitiveness.

·     Mega Image launches its own ready-meal brand

Mega Image is launching its own ready-meal brand, Mega Appetite, which will include sandwiches, snacks, salads, soups, main courses, desserts, and complete menus. The products will be available in the more than one hundred Mega Image shops. Currently, Mega Image retails such products in partnership with Fru Fru, brand owned by the Romanian company Good People, which has plans to expand, including alongside the retail chain.

·     ArcelorMittal Galați opens new pre-painted sheet metal production line

ArcelorMittal is to open a pre-painted sheet-metal production line at its Galați plant, after making a series of investments in modernizing a furnace and rolling mills, as well as erecting a new crane, according to Geert van Poelvoorde, C.E.O. of ArcelorMittal Europe Flat Products. He also said that the Galați plant operates in a difficult market, but that following investments progress is expected in the months to come.

·     Titan bread factory on the verge of extinction

One of Romania’s biggest and oldest bread producers, the Titan bread factory, is set to disappear. The factory was one of the biggest players on the Romanian bread market, alongside Vel Pitar, Boromir, and Băneasa, but the owners have decided to reorient the business toward milling.

 

Sources: Profit.ro, Adevărul, Agerpres, News.ro, Mediafax, Bursa

 

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