Romania's government approved on November 16 the founding documents for the Investment and Development Bank (IDB) with a capital of RON 3 billion (EUR 600 million). According to prime minister Marcel Ciolacu, the institution is meant to "funnel the money received from IFIs into strategic investment projects," Cursdeguvernare.ro reported.

Setting up such a bank is envisaged under the Resilience Facility and was endorsed by government ordinance in October 2022.

The bank should be operational by the end of 2024, under the envisaged calendar.

The need for such a bank was established by an ex-ante study on the potential dysfunctionalities of the Romanian financial system. The study, as well as a feasibility study for the state-owned investment and development bank, was carried out by PwC in 2018-2019.

Among the objectives of the IDB are facilitating small and medium-sized enterprises' access to financing, financing viable infrastructure projects (including by attracting private investors) and facilitating the use of European funds with a multiplier effect. The IDB will also provide technical assistance.

iulian@romania-insider.com

(Photo source: Gov.ro)