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Romania needs a national bank to promote investments in the priority fields

Romania would perform better if it had a national bank to promote investments in the priority fields and a legislative framework suitable for public private partnership (PPP), in order to be able to initiate large projects, says a document presented on Tuesday at an event of the European Commission Representation in Romania. 

The European Commission Representation launched a national campaign to promote InvestEU in Romania. 

According to this document, such a bank could help with the achievement of investments in the priority fields, as it happens in Germany, UK and France. Such a bank could focus strictly on granting financing from sources available at European level, such as the Investment Plan for Europe, also known as "The Juncker Plan." 

"If there were such a national bank with five billion in equity, as soon as this bank would be able to take over a part of the guarantee granted by the European Commission and the European Investment Trust Fund (EFSI), it could grant loans worth much more and under possibly more advantageous conditions and it would contemplate fields in which maybe it's more important to invest, but the commercial banks wouldn't dare to do it," said the same source. 

The other problem that has to do with the large projects and the Investment Plan for Europe, which could work very well, would be that related to the PPP projects. Another aspect of Romania's not performing very well, shown in the document, is that of having a weak legislation regarding PPPs, so that only when this legislation is complete the Investment Plan for Europe could work very well as part of these type of projects. 

The Investment Plan for Europe, a common initiative of the European Commission and the European Investment Bank aims at mobilizing public and private investments worth a total of 500 billion euros by 2020 on the European Union territory. In Romania, the Investment Plan for Europe has already granted 258 million euro, expecting the mobilization of 943 million euros in total investments.



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