Romania’s current EU funds absorption rate up by 18.55pps y/y to 33.47% at end-2013

By bne IntelliNews January 2, 2014

Romania’s current* EU funds absorption rate increased significantly by 18.55pps to 33.47% at the end of 2013, the ministry of European funds announced. The intermediary payments already cashed by final recipients of EU-funded projects increased by 15.02pps to 26.49% at the end of the year.

The intermediary payments in 2013 were therefore EUR 2,886mn, while the funds absorbed, meaning the money for which valid and legitimate claims were sent, reached EUR 3,564mn.

Initially, the government set a EUR 6bn target for funds to be absorbed in 2013, but the pressure for quick absorption was eased by a recent change in procedures that gives Romania more time to spend the money earmarked for the years 2011-2012.

Nonetheless, Romania still has to spend all the money earmarked under EU’s 2007-2013 budget by the end of 2015 – or the money not claimed would be lost. Overall, Romania was earmarked some EUR 19.2bn out of which it absorbed EUR 6.43bn as of end-2013.

* The funds effectively absorbed are defined as claims sent by final recipients even if the final payment was not made yet; as opposed to the simple absorption rate, sometimes used for the payments already made. The absorption rate is calculated from the total 2007-2013 budget earmarked for Romania.

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