A loan of ECU 225 million for upgrading the main European road corridors in the Transylvania and Moldavia regions was signed in Bucharest by the European Investment Bank (EIB), the European Union's long-term financing institution, and the Romanian Government. This loan brings to above ECU 1 billion the total made available by the EIB for transport, energy, telecommunications and industrial projects in Romania since 1993.

Last month Romania and the EIB also signed a loan of ECU 200 million for the national railway company SNCFR to modernise the railway line between Bucharest and Brasov. This investment will allow speeds of up to 160 km per hour for passenger trains thus improving substantially service between the two cities.

The railway and roads projects were presented for financing to the EIB in December 1997. The excellent co-operation with the Romanian authorities and Régie Autonome responsible for project preparation and implementation has allowed the EIB to deliver in minimum time a total of ECU 425 million, at its very attractive terms and conditions, for crucial investments with a considerable growth and employment potential and strong EU integration connotations. Prospects for future EIB lending in Romania are interesting, with a number of operations, currently under review, expected to lead to additional signatures in the next few months.

Commenting EIB lending in Romania, Vice-President Wolfgang Roth said: 'I am very satisfied that EIB financing in all 10 accession countries in Central and Eastern Europe is continuing at a very strong pace. This means that no gaps are opened between the candidate countries earmarked for starting early negotiations and those to follow later. The development of adequate infrastructures is a necessary condition for advancing on the road to EU membership, but a lack of suitable financing, notably long-term credits, remains a major constraint. By doubling its lending to projects in the candidate countries in Central Europe this year, the EIB also hopes to contribute to growth and employment and to accelerate accession.'

The EIB was set up in 1958 under the Treaty of Rome to provide loan finance for capital investment furthering European Union policies. While strengthening weaker EU Regions has always been its main goal, the Bank also lends to projects outside the European Union under the EU co-operation policy toward third countries. During 1998-99, loans totalling ECU 5.5 billion will be channelled to projects in the ten Central European countries preparing for EU membership. Owned by the fifteen Member States, the EIB raises the bulk of its funds on the capital markets where its bond issues are consistently graded `AAA', the best credit rating.


(1) Conversion rates used by the EIB for statistical purposes during the current quarter are those obtaining on 30/06/1998, when 1 ECU = 1.99 DEM, 0.64 GBP,1.07618 USD,9.501.41 ROL.