EUGEN TEODOROVICI: "CEC Bank or Eximbank, turned into a bank for Romania's development"

Romania could have a bank for development by turning CEC Bank or EximBank into one, Eugen Teodorovici, the minister of European Funds, said yesterday. He explained: "Such a decision must be made by the Ministry of Public Finance and is being reviewed by the Government. Many European countries have that kind of banks. The benefit of having such an institution is that we can get it involved in the process to finance projects which use European funds. With the bank for development involved in the process, we can directly access the funds and shorten and simplify the procedures".

The official added that he wants to involve the commercial banks from the very beginning in the process of verification and evaluation of projects financed using European grants.

"Once the banks have performed the verifications, the authorities would not do them once again themselves, to avoid doing the same work twice and in order to shorten the implementation deadlines", he added.

Minister Teodorovici also said that he wants to complete this year the reformation of the absorption system and said that he finds it embarrassing that in 2015 there is still talk about this subject.

He mentioned that he wants a good degree of absorption in 2014, in the new 2014-2020 multi-annual financial framework, which is why he will soon be proposing to the government several solutions: "For example, we have a list of backup projects of the current financial allocation, but which have no financing and which we know for sure are eligible. We are going to introduce them into the new 2014-2020 allocation period, so that the beneficiaries get the ability to implement them already and to settle them already this year using EU funds".

The minister emphasized that he would also act on the large number of disputes related to the public procurement system, which is blocking the implementation of projects. He wants to make it harder for disputes to be filed, and for the fee charged for submitting a contestation to be substantially increased, in order to discourage this "national favorite past-time".

The minister also mentioned that between 2014 and 2020, the private sector will have about 4 billion Euros in European funds directly available, of which 3.2 billion Euros are intended for SMEs. Indirectly some of the money allocated to the public authorities, will also accrue to the private sector, through infrastructure works.

Eugen Teodorovici further said: "I estimate that in June we will have ready the guide for the private beneficiaries of European funds. We want to set up clear and simple rules, with a simplified bureaucracy in the new financial allocation. I find it normal for the authorities to have an electronic database and to cross-check the information about the beneficiary, and the private beneficiary to come in and issue a statement at their own responsibility that they can co-finance the project. Thus, we will have a better absorption".

According to the minister of European Funds, the talks with the banks on the outsourcing of some activities made by the intermediate bodies and the management authorities. He says that banks will certainly be capable of successfully taking on some of these roles.