“We thought we could support European projects if we required comfort letters to determine if projects are bankable. Currently, there is no problem in obtaining such a letter,” said the minister.
He highlighted that, in many cases, after a project is evaluated, declared eligible and financed, the bank says the project is no longer bankable.
The ministry will work only with banks that are really involved in financing EU projects, Fuia added.
Through a comfort letter, a lender expresses its willingness to provide a company with the funds needed to finance a project, if it is endorsed by the authority in charge of EU fund absorption.
Since 2011, EU-funded projects for which private co-financing to cover eligible costs amounts to at least EUR100,000 must be joined by a comfort letter in order to be approved.
The Romanian Payment Agency for Rural Development and Fisheries, or APDRP, decided last year not to accept comfort letters issued by non-bank financial institutions, arguing they can’t be trusted for a thorough analysis of their clients.