Romania sets up investment and development bank

By bne IntelliNews November 16, 2023

Romania’s government on November 16 approved the founding documents for the Investment and Development Bank (IDB) with a capital of RON3bn (€600mn), an institution meant to “funnel the money received from IFIs into strategic investment projects” according to Prime Minister Marcel Ciolacu.

Setting up such a bank is envisaged under the Resilience Facility and was endorsed by government decree in October 2022. The bank should be operational by the end of 2024, under the envisaged calendar.

The need for such a bank was established by an ex-ante study on the potential dysfunctionalities of the Romanian financial system. The study, as well as a feasibility study for the state-owned investment and development bank, was carried out by PwC in 2018-2019.

Among the objectives of the IDB are facilitating small and medium-sized enterprises’ access to financing, financing viable infrastructure projects (including by attracting private investors) and facilitating the use of European funds with a multiplier effect. The IDB will also provide technical assistance.

Related Articles

UniCredit revises Romania’s 2024 growth at 1.7%, expects slight improvement in 2025

UniCredit downgraded its 2024 growth forecast for Romania to 1.7% (from 2.4% in July), due to the poor performance in H1 and a slower-than-anticipated recovery in the EU, but it upgraded its 2025 ... more

Erste analysts expect Romania to defer next rate cut to Q2 2025

The National Bank of Romania (BNR) will keep the key rate on hold at 6.5% at its last meeting of this year scheduled on 8 November, according to a research note ... more

Romania’s Banca Transilvania announces €700 FX MREL bond

Romania’s leading financial group Banca Transilvania announced the final results of the FX bond issued on ... more

Dismiss