Romania: EIB supports Rural Development Programme with EUR 450 million

• The EIB loan will co-finance rural development projects supported by EU funds totalling EUR 5.4 billion across the whole of Romania
• It will support the modernisation of 3,000 farms and co-finance 400 projects focused on the processing and marketing of agricultural products and 750 schemes to improve services for the rural population

The European Investment Bank (EIB) is lending EUR 450 million to Romania to finance its national contribution to the implementation of the Romanian Rural Development Programme (RDP) together with grants from the European Agricultural Fund for Rural Development in the period 2014-2020. The loan was signed on the margins of the meeting of the EIB’s Board of Directors taking place in Bucharest on 17-18 September.

EIB President Werner Hoyer commented: “The EU bank continues to support rural development in Romania. Our loan will complement EU grants and aims in particular at strengthening the competitiveness of the agriculture and forestry sectors, improving the management of natural resources and encouraging climate friendly farming. This will help boost the rural economy, generate new jobs and develop local enterprises, infrastructure, services and above all human resources via training and advisory support”.

EIB Vice-President Andrew McDowell said: “We are pleased to renew our assistance to the Romanian rural sector with this important framework loan, confirming the EIB’s commitment to support the rural economy and people of Romania. Over recent years, the European Investment Bank’s activities in Romania have continuously grown, reaching over EUR 1.3 billion worth of signatures in 2017 and increasing by 27% compared to 2016. This brings the total EIB lending volume in Romania to some EUR 3.7 billion over the past five years (2013–2017)”.

Romania’s Public Finance Minister Eugen Teodorovici stated: “The framework loan signed today is the 6^th operation of this kind financed by the EIB, emphasizing not only the good cooperation between the Romania and the EIB but also the Bank’s readiness to respond to Government's priorities. The loan will partially cover the state budget contribution to a number of measures under the National Rural Development Program. Thus the investments in agriculture and rural development will boost competitiveness and improve the rural infrastructure around the country. In my capacity as President of the EIB Board of Governors and considering the up-coming Romanian Presidency of EU Council, starting with January 1st, 2019, I would like to state that Romania will promote a balanced approach regarding EIB future role as EU financial institution as well as the dialogue with all stakeholders involved in the complex debates regarding the next Multiannual Financial Framework.”   

The Ministry of Agriculture and Rural Development will be the promoter of the project, while public and private entities will be the final beneficiaries of the loan signed between the EIB and the Ministry of Public Finance.     

This is the second EIB operation supporting Romania’s Rural Development. The previous one, a loan of EUR 300 million for Romania’s 2007-2013 Rural Development Plan, has been fully disbursed and benefited some 900 village infrastructure projects, 4,000 famers and agri-food and forestry SMEs.