Finance Minister: The Investment and Development Bank will inject 6 billion lei into the economy next year
The Investment and Development Bank will inject 6 billion lei into the economy next year through the guarantee Conventions for the Portfolio Guarantee intended for SMEs, Alexandru Nazare, the Minister of Finance, said on Monday at the Conventions launch event.
The Minister of Finance says that the BID will inject 6 billion lei into the economy next year
“We must not forget the fact that swe have been in an economic slowdown for the past three years. It is much more difficult when the economy decreases, when economic growth decreases, the resources you have available for distribution in this area (of people affected by poverty – no) are smaller than usual. I think we should focus on finding the best solutions for economic recovery, for supporting economic growth. One of these ideas and very important, by the way, is today's BID initiative through which we inject 6 billion lei into the economy per year for over 25,000 SMEs and micro-enterprises that will practically benefit from this instrument offered by the banks and will have the opportunity to supplement the businesses, the expenses they have strictly for investments. Which, from my point of view and from the point of view of the business environment, was a long-awaited program. And the advantage of this program is that it does not have a direct impact on the deficit, but only if these projects fail. But we have seen that the multiplier effect of such a program on economic growth is very large“, said Alexandru Nazare.
For his part, Dan Sandu, general director, Investment and Development Bank, stated that next week marks two years since the signing of the mandates of the bank's managers.
“The launch of this took a long time (of the Guarantee Agreements for the Portfolio Guarantee intended for SMEs – no) because it required not only us to sign some agreements with you, but in order to be able to prepare the lending and investment strategy and the business strategy of the IDB, which were milestones in the PNRR pillar of operationalizing the bank, we had to do a study together with you and together with other participants in the financial market and in the economic environment in Romania, a market assessment and a market testing, about what the products that we will put on the market should look like. It is true that they had once been drawn in a feasibility study in 2018-2019. Just like the business plan that we redid, it had somehow been passed through the hands of many people who worked on this project before we got to it. But today we are here with you to announce that we are signing agreements with banks that cover over 80% of the market”said Dan Sandu.
Which banks have signed conventions
Agreements have already been signed with BCR, BRD, Exim Banca Românească, Banca Transilvania, CEC Bank, ING Bank Romania, Libra Internet Bank, Unicredit Bank and will be signed with Garanti BBVA Romania, Raiffeisen Bank Romania, Vista Bank, Intesa Sanpaolo Bank Romania, Patria Bank.
Conventions will also be signed with the following IFNs: BCR Social Finance, Vitas, Easy Credit and Filbo.
Present at the launch event, the first vice-governor of the National Bank of Romania, Leonardo Badea, stated that from the point of view of the central bank, supporting instruments through which capital reaches where it can generate value means contributing to sustainable progress.
The Investment and Development Bank (BID) organized, on Monday, the official launch event of the guarantee Conventions for the Portfolio Guarantee intended for SMEs.
The Investment and Development Bank is the only development bank owned 100% by the Romanian state, through the Ministry of Finance, created at the end of 2023, through the National Recovery and Resilience Plan. The BID's mission is to support economic and social development, economic competitiveness, innovation, sustainable economic growth and the achievement of climate neutrality in order to remedy dysfunctions on the financial market.
