The Ministry of Finance (MFP) has contracted a loan of one billion euros with the European Investment Bank (EIB) to cover the state budget contribution, for co-financing the priority projects in the transportation field, under the 2014-2020 Large Infrastructure Operational Programme (POIM).
The Government could reallocate to other targets the amounts already budgeted for co-financing projects run with reimbursable EU funds, depending on the spending agenda for the loan.
In the 2017state budget, at the „Transports” section, there are „expenses related to programs with reimbursable financing” mentioned, of 200 million lei.
The EIB loan is to „contribute to encouraging investments, the implementation of the Transportation Master plan agreed with the European Commission and helps increase the absorption of the EU grants within the multiannual financial framework 2014-2020″.
It targets projects covered by Axis I and II of POIM, which will receive European non-reimbursable funds, according to a press release issued by MFP.
Axis 1 refers to „improving mobility by developing the TEN-T and subway network” and Axis 2 to “developing a multimodal, quality, sustainable and efficient transportation system”.
The loan is granted for up to 25 years, including a grace period of up to seven years, each tranche drawn is considered an independent loan, with its own maturity and grace period.
The interest rate may be fixed or variable and agreed with the EIB, and will only be charged when tranches are drawn. The repayment of each tranche can be made in one or more instalments.
Romania is represented by the Ministry of Public Finance as a borrower and the promoter is the Ministry of Transport. The loan framework agreement has been signed on Tuesday by Ionut Misa, the Finance Minister, and Andrew McDowell, the Vice-President of EIB, at Luxembourg.
