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June 17, 2024
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Economy Finance Romanian News

Romania to Establish Its Own Development Bank

Romanian prime minister announced the establishment of the Development Bank, which the state will finance.

The Development Bank is a Romanian institution with state capital that will target the commercial sector. It is a state-owned bank that will collaborate with public and private businesses.

Another important step is being taken to diversify the financing instruments of the economy. It is an objective that Romania, somehow, has programmed since 2015, but, unfortunately, it has not been achieved. We are taking an important step today. The next step will be the realization of the constitutive act and the appointment of the management of this bank.

Adrian Caciu, Romanian Minister of Finance

The project dates back to 2015 and will be run by a council of seven people who will each get a set salary and performance bonuses, according to the finance minister, Adrian Caciu.

The Development Bank is anticipated to play a crucial role in implementing financial instruments and guarantee mechanisms, including those funded by non-reimbursable European funds and investment initiatives at the level of the EU and international financial institutions.

According to the Romanian prime minister, this bank will be intended to support the business environment. Perhaps this is the measure Romania’s government came up with after many Romanian businesses closed during the pandemic. It remains to be seen how this project will turn out to be and how helpful it will be for Romanian entrepreneurs.

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