The [Investment and] Development Bank of Romania is to be established in June, finance minister Adrian Câciu announced on May 26 at the debate "Financial guarantee solutions - Retrospective and perspective 2023-2024," Economica.net reported.

The European Commission approved in January, under EU State aid rules, a EUR 1.6 billion Romanian measure to set up the Romanian Investment and Development Bank.

Romania notified the Commission of its plans to set up a national development bank with an initial capital of up to EUR 1.6 bln (RON 7.9 bln). The bank will be established as a fully state-owned entity, with the Ministry of Finance as its shareholder, and will act under the supervision of the National Bank of Romania.

The aid will take the form of a capital injection of up to EUR 608 mln - of which EUR 10 mln is estimated to be received in 2024 under the Recovery and Resilience Facility, a EUR 1.4 mln grant, and state guarantees worth EUR 992 mln.

The bank will be entrusted with addressing market failures and supporting economic development and investment opportunities. It will intervene to ensure access to financing in areas where there is insufficient availability in the market, with a focus on providing funding to small and medium-sized companies, including micro-enterprises and start-ups.

The bank may also support infrastructure projects aiming at improving productivity in the Romanian economy, as these projects usually require long-term financing that is difficult to secure on the market.

iulian@romania-insider.com

(Photo source: Inquam Photos/Octav Ganea)