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Romania’s Fin Min, EIB Ink EUR1B Loan Deal

Romania’s Finance Ministry signed Monday a loan agreement with the European Investment Bank, or EIB, worth EUR1 billion, for financing transports, environment and economic competitiveness projects.
Romania’s Fin Min, EIB Ink EUR1B Loan Deal
24 nov. 2008, 18:38, English

The international financial institution will grant Romania a down payment by the end of the year, to pre-finance the projects with European funds, Finance Ministry’s state secretary Eugen Teodorovici said.
 
The loan agreement was signed by Teodorovici and EIB Vice-President Mathias Kollatz-Ahnen.
 
"The loan will be used to co-finance structural and cohesion programs in Romania, and will be directed toward environmental, economic competition and transportation operational programs," Teodorovici said Monday.
 
According to the contract, the money will be granted in maximum 15 tranches of EUR25 million to EUR250 million each, the deadline for attracting the entire loan being August 31, 2013.
 
The loan’s interest rate will be fixed or variable, according to the market’s conditions in the moment of granting the respective tranche.
 
In order to request a second tranche of loan, 80% of the initial tranche must have been approved and included in a project.
 
The loan conditions are negotiated at granting each tranche, Teodorovici said.
 
Kollatz-Ahnen said EIB might supplement its financing towards Romania by up to one third of the current value during the next two years, in view of the negative impact of the international financial turmoil in all European Union states.
 
"The international financial crisis had a negative impact in all EU states. Our message towards Romania is that we will supplement the loan by one third of its value," Kollatz-Ahnen said.
 
According to a memorandum signed between EIB and the Romanian authorities in 2006, the international financial institution engaged to grant Romania a EUR1 billion loan each year for co-financing European projects.
 
EIB granted Romania EUR6 billion loans as of 1990, out of which EUR4.4 billion for public projects and the rest for private ones.