“Infrastructure and agriculture are two fields that will need funding in the coming period and we want to support firms with projects in these fields and if necessary, and infrastructure projects should need significant funding in the Romanian currency, we can also consider a leu-denominated bond issue on the Romanian market,” Ana-Maria Mihaescu, head of IFC mission in Romania, told ZF.
Infrastructure investments are the main pillar that could support robust and sustainable economic growth.
IFC has a $630 million exposure to Romania, of which approximately 70% to the financial system and the rest on energy, retail, logistics and healthcare. Moreover, there are syndications arranged by the institution worth $100 million.
Besides agriculture and infrastructure projects, IFC plans to also support renewable power projects and wants to have an impact over energy efficiency projects, either through credit lines, or by investing together with other investors in such projects.
Mihaescu believes the main challenge Romania faces is to support economic growth and identify the growth engines based on competitiveness, as different from the one based on consumption. According to her, the regional risk must be monitored closely and solutions need to be found to counter its impact. At the same time, the electoral should not be ignored.
Mihaescu calls for caution, the more so as the following period is not an easy one. “I cannot tell Romania will have a period of sound economic growth, that we can project 5 or 8 years with growth rates of above 4%. At best, there will be small economic growth and it would be good for us to have it as many years as possible”.
(English version by Catalina Apostoiu)