On Tuesday 31 January, the European Commission approved €1.6 billion in Romanian aid to create the Romanian Investment and Development Bank. It aims to support the economic and social development, competitiveness, innovation and growth of the Romanian economy.
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 €608 million, out of which €10 million are estimated to be received in 2024 under the Recovery and Resilience Facility; - a €1.4 million grant; - €992 million in state guarantees.
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 enterprises, 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. (Original version in French by Lionel Changeur)