In 2013, the EBRD invested around half a billion euros in more than 30 projects in Romania and in the first quarter of this year poured other EUR250 million into eight projects.
In line with its operational model, the bank provides financing lines on the one hand and on the other one enters the shareholding structure of companies on the markets it operates on.
In Romania, the EBRD invested EUR6.6 billion in 359 projects since the early ‘90s until the end of March 2014. The bulk of funds went to the private sector, but EBRD officials say they are also looking at state-owned companies.
Currently, industry, retail and agribusiness projects account for 35% in the bank’s portfolio, infrastructure projects account for 26%, energy projects 22% and financial institutions make 17%.
“In Romania, we want to make a mark in the field of SMEs, but we are also interested in public utilities companies and we’re closely watching the next floatations. We participated in the privatization of Romgaz and others may follow,” said Jean-Marc Peterschmitt.
The EBRD has started financing SMEs in recent years, and the bank’s officials say this is a priority direction in the future, though it’s easier to work with large businesses. However, the bank is still looking at the large players of the economies it operates in as well.
In 2013, the bank participated in the floatation of Romgaz, buying a 1.9% stake worth EUR50 million, and EBRD officials say they are awaiting the new listings announced by the Romanian state. The next company to be floated is energy supplier and distributor Electrica, with the offer for a 51% stake being expected in early June.
Jean-Marc Peterschmidt added the bank is also interested in rail transport players. In late 2012, the EBRD announced it granted a EUR175 million loan to CFR SA, the company managing the Romanian rail infrastructure. The bank provided funding for the modernization of rail stations in other cities of Romania as well.
Infrastructure, together with energy and the financial system are key domains for EBRD investment and funding in all the countries, according to Suma Chakrabarti, president of the bank since the summer of 2012. He added the bank is also looking at private sector competitiveness, at the relationship with the EU (in the case of European countries) and at the state of the business environment.
“Corruption is an issue and not just in the Balkan region (in which he includes Romania i.e.). Romania, for instance, has made significant progress in the past year and a half in fighting corruption.” However, “there’s still a lot to be done”.
As regards the economy, Peter Sanfey, deputy director for country strategy and policy with the EBRD, says Romania has the advantage of a prudent fiscal policy and of a low debt level compared with other states of Europe. “Economies in the region (including Romania i.e.) will grow by 2-3% in the 2014-2015 period, it’s a good sign, but growth rates are far from the full potential,” he added without providing further details.
(English version by Catalina Apostoiu)