- The European Investment Bank has provided more than €17 billion for over 170 projects since the start of its operations in Romania.
- Today, the EIB announced €675 million in new financing for transport, urban development and small businesses.
- €600 million in transport from EIB will serve as co-financing for the EU Recovery and Resilience Facility.
As the European Investment Bank (EIB) celebrates its 30th anniversary in Romania, the EIB Group has made a series of major announcements at an event in BNR Arena attended by Romanian officials and EIB Vice-President Lilyana Pavlova.
In Bucharest, EIB Vice-President Lilyana Pavlova said: “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 in new financing for transport, urban development and small businesses, of which €600 million will contribute to the successful implementation of the Recovery and Resilience Facility.”
EIF Chief Executive Marjut Falkstedt added: “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.”
Improved road connectivity for Romanians
A first tranche of €600 million out of an EIB-approved loan of €1.2 billion will go towards building a new motorway between Ploiești and Pașcani 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 EIB technical advisory support for project preparation (JASPERS) and for project implementation (PASSA).
Energy efficiency for better cities
The EIB announced the signature of a €20.9 million 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 loan to finance energy efficiency retrofits for residential buildings in Sector 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 to support urban and regional development across the country.
Support small businesses and green transition
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 in Romania in support of small businesses and mid-caps. Today, the EIB and Garanti BBVA signed a €24.4 million 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.
On top of the new financing, EIB Vice-President Pavlova thanked Lara Tassan Zanin for five years of honourable service as head of the EIB Group Office in Romania.
Background information
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 European Investment Bank (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. After the outbreak of COVID-19 in 2020, the EU bank significantly increased its support for healthcare in Romania by providing €1.1 billion to help finance three regional hospitals and renovate 26 smaller hospitals and medical facilities across the country. Recently, the EIB Group has also been focusing on other areas such as higher education, SME support and green transition investments. Romania hosts one of the largest EIB Group offices worldwide and is the largest recipient of EIB advisory services supporting the Romanian authorities in preparing and implementing projects co-financed with EU funds.
Since its inception, the EIF has provided financing worth €2.3 billion through 115 contracts in Romania. These investments are expected to leverage approximately €6.5 billion in financing and have so far supported more than 381 000 jobs. The EIF is part of the EIB Group. Its central mission is to support Europe’s micro, small and medium-sized enterprises by helping them to access finance. The EIF designs and develops venture and growth capital, guarantees and microfinance instruments that specifically target this market segment. In this role, the EIF contributes to the pursuit of key EU policy objectives such as competitiveness and growth, innovation and digitalisation, social impact and inclusiveness, skills and human capital, and climate action and environmental sustainability.
JASPERS (Joint Assistance to Support Projects in European Regions, http://jaspers.eib.org/) helps EU Member States and Candidate Countries develop projects that contribute to the rational and efficient use of EU funds in support of European policy objectives. JASPERS is a technical assistance partnership between the European Commission and the EIB to support projects in Europe through specific mandates.
PASSA (Project Advisory Support Service Agreement) helps projects funded by the European Union. Its objective is to speed up project execution and the absorption of EU structural and investment funds