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EIB announces new financing for Romania, worth 675 million EUR
The European Investment Bank (EIB) announced on Thursday new funding for Romania, worth 675 million EUR for transport, urban development and small businesses.
According to a press release, the amount granted for transport by the EIB, worth 600 million EUR, will serve as co-financing for the EU Recovery and Resilience Facility.
The EIB and Romania celebrates 30 years of partnership, the EIB providing more than 17 billion EUR for over 170 projects since the start of its operations in Romania.
"Seeing the progress the country's economy has made over the last 30 years, I am proud that the EIB Group, as the EU bank, has been able to support it by providing finance for better schools, hospitals, public infrastructure, universities and transport, and by supporting climate action and small businesses. Our commitment to Romania remains strong, as demonstrated by the 675 million EUR in new financing for transport, urban development and small businesses, of which 600 million EUR will contribute to the successful implementation of the Recovery and Resilience Facility," EIB Vice-President Lilyana Pavlova stated within an event held at the BNR Arena.
In her turn, European Investment Fund (EIF) Chief Executive Marjut Falkstedt underscored that the EIF has generated financial support for more than 56,000 Romanian businesses.
"Our engagement in Romania is a real success story, proof of what can be achieved through effective collaboration between local, national and European entities. To date, the EIF has generated financial support for more than 56,000 Romanian businesses, in large part due to our partnership with the Romanian government. Through a series of new agreements, we intend to remain closely engaged in the Romanian market, offering financing solutions that will help to boost entrepreneurship, fostering the country's innovation potential and helping small businesses as they navigate the green and digital transitions. Tackling the challenges we are facing, first and foremost climate change and its economic impact, requires synergies and close cooperation, and we are confident in the potential of the long-term business partnerships that we have developed, which will enable a prompt rollout of support for Romanian SMEs," Marjut Falkstedt stated.
According to the release, a first tranche of 600 million EUR out of an EIB-approved loan of 1.2 billion EUR will go towards building a new motorway between Ploiesti and Pascani in eastern Romania. Supported by the European Union's Recovery and Resilience Facility, the new road will be part of the core trans-European transport network. It will have a substantial economic and social impact on the region, improve safety and save significant travel time. In addition to the financing, the project received valuable the EIB technical advisory support for project preparation (JASPERS) and for project implementation (PASSA).
The EIB announced the signature of a 20.9 million EUR loan with the Municipality of Oradea to finance investments in urban transport, urban regeneration and energy efficiency improvements in schools, public buildings and street lighting. The EIB also signed a 30 million EUR loan to finance energy efficiency retrofits for residential buildings in District 2 of Bucharest. Both investments are continuations of the EIB's long-term collaboration with these authorities. Over the last five years, the EIB Group has invested 398 million EUR to support urban and regional development across the country.
The EIB Group has been a strong supporter of small businesses in Romania, the backbone of the country's economy. Over the last five years, we have invested 2.185 billion EUR in Romania in support of small businesses and mid-caps.
In this context, the EIB and Garanti BBVA signed a 24.4 million EUR loan to support access to finance for small businesses. The loan will make financing more accessible for businesses in Romania, the majority of which is formed of cohesion regions, as well as for those investing in climate action, as a way to support the green, inclusive and sustainable transformation of the Romanian economy.
The EIB has worked in Romania since the early 1990s, improving regional cohesion, infrastructure and healthcare services, and supporting small and medium-sized enterprises. The EIB is the long-term lending institution of the European Union owned by its member states. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.