Finance Ministry Borrows 1 bln EUR From EIB

Romania"s Ministry of Economy and Finance (MEF) and the European Investment Bank (EIB) have signed a 1 billion EUR loan agreement, which the Romanian party will use to co-finance and pre-finance investment programmes that are eligible for non-reimbursable funding from the EU. According to MEF State Secretary Eugen Teodorovici, the 1 billion EUR borrowed from the EIB for 15 years was calculated based on the necessary funding for projects to be financed via the operational programmes for Transport, Environment and Increasing Economic Competitiveness. According to Teodorovici, the Government is going to formally authorize the loan today. The funds will be accessed in up to 15 tranches of at least 25 million EUR each. In addition to the projects included in the above categories, Romanian small- and medium-sized enterprises (SMEs) will be able to access part of a 15 billion EUR budget to be made available by EIB to all EU states in 2009. According to Teodorovici, contracts for financing four leasing companies in Romania with a total of 125 million EUR were approved in Luxembourg last week. He mentioned Bancpost and CEC Bank among the banks interested in such facilities.

EIB Vice President Matthias Kollatz-Ahnen pointed out that the EIB was discussing ways to increase investments by as much as one third in the following years, especially in the newest members of the EU. In his opinion, there is no wall to protect those countries against the global financial crisis.

EIB To Increase Annual Financing For Romania By One Third

The European Investment Bank (EIB) is seeking ways to increase the annual budget of 1 billion EUR allocated to Romania by one third within a plan of similar measures for all partner countries in the context of the global financial crisis, EIB Vice President Matthias Kollatz-Ahnen said.

The 1 billion EUR loan to Romania is the largest disbursement for co-financing that the EIB has made to an EU member. "The more developed European countries were affected earlier and stronger by the financial crisis, but we need to realize that there is no wall between them and the countries in Central and Eastern Europe, such as Romania. This is why the EIB is prepared to do more and increase the value of financing by one third in the next two years. In Romania"s case, the 1 billion EUR budget could become 1.33 billion EUR," said Kollatz-Ahnen upon signing the 1 billion EUR loan agreement between MEF and EIB.