RSS
EBRD: În Romania, we woud like to see a change from the model of economic growth based on consumption to one based on investments
The economic results registered by Romania are fantastic, but in two or three years the economic model is not sustainable as it is based on consumption and we need to see a change to one based on investments, says Matteo Patrone, European Bank for Reconstruction and Development (EBRD) regional manager for Romania and Bulgaria.
‘The economic results are fantastic. The rate of economic growth is impressive. The share of the public debt in GDP is under control. The budgetary deficit is around 3%. Although the macroeconomic indicators seem good and the issue is if the growth model is sustainable in the future as everything relies on consumption. We would like to see a change from the economic growth model based on consumption to that based on investments.This comes both with public and private investments. The evolution this year is similar to that of 2017, but the considerations refer to the evolutions on medium term. In two or three years the economic model is not sustainable as it is based on consumption and we need to see a change to one based more on investments’ Matteo Patrone said at the end of a conference.
He said that 2017 was a very good year for EBRD in Romania where the bank invested 546 million euro, the largest part in the private sector, a record over the last seven years.
‘In 2018 we would like to continue this trend and we will concentrate on the private sector and on the industries where we invested in 2017: ICT, real estate, manufacture and agriculture. We will probably increase the exposure on infrastructure at the municipal level, where we had two projects in 2017 in Sibiu and Brasov, and where we have strong connections in other cities. As regards the national infrastructure and the restructuring of the state-run companies, which is another important part of what we want to get in this country we are ready to help the authorities both in the sector of transport and energy infrastructure development and the restructuring of the state-run companies, but we expect a sign on the part of the authorities that they are interested to get involved in these projects’ Matteo Patrone said.
EBRD is the biggest institutional investor in Romania. It supported in 2017 a number of 29 investment projects worth 546 million euro.Out of this financing 93% was offered to the private sector.