Romania gets €1 billion loan from EIB

BUCHAREST, Nov 24 -- Romania Monday signed with the European Investment Bank (EIB) a credit agreement worth €1 billion (1.266 billion U.S. dollars), for co-financing the EU-funded projects.

The loan will be granted as matching funds for implementation of projects in Romania financed under the EU Structural and Cohesion Funds, said Finance Ministry's Sate Secretary Eugen Teodorovici, after signing the agreement with the visiting EIB Vice-President Mathias Kollatz-Ahnen.

The loan will be directed toward environmental, economic competition and transportation operational programs, he added.

The loan will be disbursed in maximum 15 tranches of €25 million ($31.65 million) to €250 million ($316.5 million) each, the deadline for attracting the entire loan being August 31, 2013, according to the agreement.

According to local analysts, the loan will contribute to a better absorption of the resources under the EU Funds.

The 1-billion loan was approved by the EIB Board of Directors on October 21, 2008 and Kollatz-Ahnen said EIB might increase its financing to Romania from €1 billion to €1.3 billion for the coming years, in view of the undeniable impact of the international financial crisis.

"We will do our best for the year to come, to prepare a higher volume for Romania, let's say a third more," said Kollatz-Ahnen, adding that "talks are held at European level on ways to support, encourage investments in this context."

EIB and Romania in Oct. 2006 signed a Memorandum of Understanding, setting a framework for the EIB's support to the country's investment program during the next years. While financing will be based on specific project proposals, the agreement indicates that such financing may be in the order of €1 billion per year and can be adjusted in line with needs.

Since 1990, the EIB's lending in Romania has reached €5.1 billion to finance investment projects relevant for Romania's successful integration into the EU. Since Romania joined the EU in 2007, the EIB has sought to play an important role in supporting the country's successful development within the union.