The European Investment Bank (EIB) and the European Investment Fund (EIF) signed 1,012 million euro in financing for new investments across Romania in 2022, affirming the EIB Group’s commitment to supporting the country’s economy.
In 2022, the EIB Group’s engagement in the country included financing for health, urban development, forestry regeneration, tertiary education and business investment. The EIB provided backing for construction of a new regional hospital in Craiova and the reconstruction of 26 smaller hospitals and medical facilities across the country, financing to universities in Cluj-Napoca and Targu Mures and new targeted support to improve road safety across the country. Both the universities and the road safety projects also received advisory support from the European Investment Advisory Hub. In addition, the Bank made funds available to small and medium-sized enterprises (SMEs) and mid-caps through financial intermediaries, financing R&D for innovative powertrain technologies in electric and plug-in hybrid vehicles.
During 2022, the EIF further increased its support for an inclusive economic environment. Various transactions were made under the microfinance theme of the InvestEU Fund, aiming to mobilise more than RON 1.25 billion for microentrepreneurs across the country. The EIF has also launched the selection of intermediaries for the €400 million equity instrument financed under the Recovery and Resilience Facility, and is working with the European Commission and the government of Romania to set up an InvestEU Member State compartment that will support the green transition and the competitiveness of Romanian companies.
Looking ahead, the EIB Group is particularly focused on supporting projects related to the energy transition, education, health, transport and inclusive growth, and on helping successfully implement the Romanian Resilience and Recovery Plan.
EIB Vice-President Lilyana Pavlova, who was visiting Romania on Thursday, explained, “One of the lessons learnt from the COVID-19 pandemic is that our societies need strong and reliable health systems at all times. We supported Romania though the pandemic, but as we look to the future, I am proud that the EIB continued in 2022 to help Romania to unlock large-scale support for health. Our support for the construction of a new regional hospital in Craiova, and for the rehabilitation of 26 smaller hospitals and medical facilities, follows on our provision of financing and advisory for two new regional hospitals in Iasi and Cluj in 2021. These projects will let people access specialist treatment and improve medical education for future generations of doctors. We stand ready to support the transformation of Romania’s healthcare sector as well as other priority investments, including co-financing the Romanian recovery and resilience plan.”
Romanian Minister of Finance Adrian Câciu added, “We value the activity of the EIB Group in Romania, in particular for the implementation of the cohesion policy through co-financing and technical assistance, as well as financial instruments, in the process of increasing the absorption of European funds for the current multiannual financial framework and co-financing under the National Recovery and Resilience Plan.
We are open to exploring new ways to strengthen the partnership with the EIB, based on Romania’s development needs, in order to increase financial and advisory support, in particular towards the private sector. Our dialogue will continue to identify various opportunities relying on the Bank’s extensive experience in public projects contributing to economic growth and the mitigation of regional disparities, in line with EIB public policy goals.”
First financing request to support the Romanian Recovery and Resilience Plan
Romania is expected to receive almost €30 billion of grants and loans from the EU Recovery and Resilience Facility, Europe’s jointly-financed pandemic response fund. The EIB Group is a key co-financing partner in implementing the Romanian Resilience and Recovery Plan which sets out the Romanian government’s priorities for investing this money. In 2022, the EIB received the first financing request to implement the Recovery and Resilience Facility and the 2021-2027 European Structural and Investment Funds in Romania. The EIB will work with Romanian partners to provide up to €4 billion of new financing to support nationwide transport and health investment, among other areas.
EIB advisory services help Romania attract more than €82 billion in investment
In 2022, EIB advisory services increased tailored advisory support for public and private entities related to sectors including road safety, education, health, climate action, decarbonisation, digital transition and others. In 2023 our advisory experts will continue to support projects across a range of sectors including health, transport, energy, education, water, waste management and urban and rural development. Since 2006, JASPERS alone has helped prepare investment projects worth close to €82 billion across transport, water and circular economy, and other sectors. Meanwhile, Project Advisory Support provided technical advice for the construction of the three regional emergency hospitals in Cluj, Craiova and Iasi, and for projects in the water, energy, solid waste and transport sectors.