Salaries in companies with domestic capital increase faster but remain half the level in foreign companies. Why
Salaries in domestic companies continue to grow as staff shortage widens, but remain half the level registered in foreign firms, according to an analysis by… Mai mult›
Although gross fixed capital formation had a surprising positive contribution to the economic growth in the first part of the year, members of the National… Mai mult›
Romania recorded the largest public deficit among the EU states in 2018, according to data published by Eurostat, except for Cyprus (-4.8% of GDP last… Mai mult›
IMF report – Conclusions show that Romania has become a new and atypical growth model: through imbalances. Which will soon get to be paid
Romania’s macroeconomic imbalances have increased in the past year, and economic and fiscal policies have to change so that the population’s incomes and prospects of… Mai mult›
Discharging imbalances on RON exchange rate could start even this year. Analysts’ scenarios and BNR’s uncertainty
Analysts’ scenarios on the evolution of the exchange rate are rather prudent for the coming months, but severe for the beginning of the next year… Mai mult›
de Victor Bratu , 24.3.2019
Projects in Romania have received funding of a total of EUR 676 million from the European Fund for Strategic Investments (FEIS), according to a report released on Thursday by the European Commission’s Representation.
These FEIS projects would generate EUR 2.6 billion of investment, according to the EC.
Ranking of generated investments related to GDP – 21st position
By the value of these further investments related to GDP, Romania ranks 21th in the EU ranking.
The value and economic impact of the Romanian projects for attracting resources from the so-called “Junker Investment Plan” are much lower compared to the situation in other sister states from the former communist bloc.
Bulgaria, for example, ranks 3rd in the ranking of attracted investments relative to GDP:
- projects worth EUR 456 million
- investments that will be attracted as a result of FEIS projects implemented – EUR 2.388 billion
Greece ranks 1st, followed by Estonia, and Poland ranks 7th:
- Country EIB financing (million euro) generated investment (million euro) generated investment ranking related to GDP
Efficiency ranking – 22nd position
However, if we make a ranking by the efficiency of these funds, Romania ranks 22nd, with EUR 3.89 generated by additional investments for every euro attracted through FEIS projects:
To what money went
Infrastructure and innovation projects
- 16 projects approved, funded by the European Investment Bank (EIB) with FEIS support
- total funding of approximately EUR 561 million
- funds would attract another EUR 1.4 billion
Small and medium-sized enterprises (SMEs)
- 13 agreements approved with banks or intermediary funds funded by the European Investment Fund (EIF) with FEIS support
- funding of EUR 115 million
- the funds would attract another EUR 1.2 billion, which could facilitate the access to financing for some 16,089 SMEs and medium-capitalized enterprises
- BEI financing EUR 676 million expected to generate EUR 2.6 billion total investment
- Romania ranks now 21st in terms of investment corresponding to FEIS related to GDP
- 29 projects and agreements for SMEs 16,090 SMEs that will benefit from the access to financing
- EUR 315 billion – In July, Juncker plan exceeded the initial objective, which was set to achieve investment amounted to this value
- our next objective is to reach investment amounting to EUR 500 billion across Europe by the end of 2020
Examples of FEIS beneficiary projects
- funding supported by FEIS: EUR 100 million
- the amount would generate total investments of EUR 500 million
Transgaz is the Romanian national natural gas transportation company. Under the Investment Plan, EIB grants a EUR 100 million loan to build a new European gas transport corridor.
The objective of the project is to increase the security of gas supply and reduce the energy dependency by diversifying sources and supply routes.
The project also benefits from a EUR 179 million financing under the Europe Interconnection Mechanism.
Important: it has started following the European Commission’s steady pressures, given that it is part of a broad European project.
Agricover loans for SMEs
- financing supported by FEIS: EUR 15 million (tranche 1)
- the amount would generate total investments of EUR 54 million
EIB grant a loan of EUR 15 million to Agricover credit IFN, with which this institution will finance small projects implemented by SMEs in the agricultural sector.
Agricover is currently the only financial institution in Romania dedicated exclusively to financing farmers and their projects.
Circular economy with GreenFiber
- funding supported by the FEIS: EUR 7.5 million
- the amount would generate total investments of EUR 20 million
EIB grants a loan of EUR 7.5 million to GreenFiber International SA to finance a recycling project that facilitates the transition to a circular economy.
The project will create 280 full-time jobs and increase the amount of waste collected and processed by more than 50,000 tonnes per year.