TEODORA PAŞA, ALPHA BANK: "A greater allocation for SMEs is necessary"

The degree of absorption of European funds has increased spectacularly lately, when comparing it to the 2010-1012 period, according to Teodora Paşa, head of the Department for Structural Funds of Alpha Bank România, who thinks that, in terms of absolute numbers, "a state of normalcy exists in that regard".

The proposed reform of the absorption system is part of the combined efforts which are aimed at maximizing the return on European grants, she says: "We are witnessing a dynamic process of the issuing of the various instructions which are attempting to remedy the flaws of the previous scheduling period. It is important that the good practices be followed consistently in the coming years as well".

A better coordination between the national and sectoral policies and the calls for projects will lead to the increase of the degree of absorption and the maximization of the impact of the investments on a sectoral and regional level, according to the representative of Alpha Bank, who mentions that emphasis should be placed on standardizing the procedures at the level of all Management Authorities and Intermediary Organisms, for all the operational programs.

"I think that the involvement of private entities in the process of receiving and evaluating the financing applications is an absolute must, on one hand because of the expertise held by the private sector, as well as of the attitude, responsibility and degree of involvement, on the other".

All the sectors can be developed through the injection of European grants, especially in the current national and European economic context, Mrs. Paşa concludes.

She says: "The sector of the competitiveness of the SMEs will continue to have a significant impact on the national economic growth. From that point of view, I think that a higher allocation of funds for the SME segment is necessary, as well as the thinking of some measures for two categories of companies considered as important growth engines: major companies (for which it seems that in the 2014-2020 period there will be no measure for which they will be eligible) and the companies which no longer fit the SME definition due to the number of employees (mid cap)".

Teodora Paşa considers that an excessive simplification of the access and implementation procedures would not have positive effects in the long term. It is important for the allocation of grants to go to mature projects/applications which have reviewed the opportunity and various scenarios and it is important to find a balance between the basic requirements of a project (the description of the investment, the market study, financial analysis, etc) and the formal requirements (number of copies submitted, for instance), she also says.

• Teodora Paşa: "The beneficiaries must think of their business over the long term"

The level of the co-financing granted by banks is strictly correlated with the number of projects which are under implementation, knowing a significant growth, over the last two years, according to the representative of Alpha Bank: "The products of Alpha Bank Romania are intended for all economic sectors, in order to meet to the highest degree possible the diverse needs that the beneficiaries have. (...) We support our clients with dedicated products, both with cash facilities (bridge loans, investment loans and VAT facilities), and non cash (letters of guarantee, bills of credit, etc.), for a quicker and more effective implementation of the investment projects".

The first advice that she has for the beneficiaries of the project is to plan their business over the long term: "The projects should be viewed as a concrete method of achieving some growth objectives over the medium and long term. The approach that some beneficiaries have, of making a project just because < it follows the trend > or < a friend did this >, is dangerous. Before making a decision concerning the involvement in a project, every potential beneficiary should be able to honestly answer a number of questions, including, among other things, the concrete plans they have for a period of at least ten years; what are the premises that the idea of the project is built on; whether they have the expertise in the sector for which they want to write the project; whether they have sufficient relevant information about the market; whether they have the technical and financial capability to implement it".

Successful projects conducted by the bank include predominantly those in the manufacturing industry, IT, the segment of hotel and leisure services, agro business and rural development and the development of human capital.