A draft Government Decision, published by the Ministry of Finance, establishes the final details of the Romanian Development Bank. The Development Bank of Romania (BDR) will be able to start its activity after issuing an authorization decision from the European Commission in matters of state aid and after obtaining the operating authorization issued by the National Bank of Romania.
The initial share capital of the bank subscribed by the shareholder, through the Ministry of Finance, is up to 3 billion lei. It will be provided from the revenues from privatization, with the exception of the amount representing the equivalent of 10 million euros, which will be paid from the state budget. To expand its operations, BDR will have to attract external sources of financing.
“BDR will be a credit institution owned 100% by the Romanian state, through the Ministry of Finance (MF), with the role of a development institution that will serve Romanian enterprises and other entities belonging to the public and private sector in Romania, in order to support the financing of projects which contributes to the economic and social development of the country, increasing competitiveness, innovation and economic growth, as well as increasing the absorption of European funds. BDR will be able to start its activity after issuing an authorization decision from the European Commission in the matter of state aid and after obtaining the operating authorization issued by the National Bank of Romania”, states the explanatory note accompanying the draft normative act.
The strategic objectives of the Bank are to facilitate access to financing for SMEs, to ensure access to financing for viable infrastructure projects, to attract private capital in investments and to improve the absorption of European funds and the associated multiplier effect, and to function as an administrator of European funds and provide Technical support.
BDR will be a credit institution 100% owned by the Romanian state, through the Ministry of Finance (MF), and will use a wide range of financial products: individual guarantees and portfolio guarantees, loans for financing working capital and investment projects, loans for energy efficiency, and as its capacity and financial strength will be strengthened and the staff will acquire expertise and specific knowledge, BDR will be able to include in the range of products and capital investment instruments (equity type).
Through the range of financial products offered, BDR will not enter into competition with credit institutions, but will act in a complementary manner with them, having the obligation to apply the mechanism to prevent the phenomenon of crowding out of private financial institutions that will be described in the act constitutive”, underlines the cited source.
The institution will be administered in a dualistic system by a Supervisory Board made up of 7 members, natural persons, of which at most one member can be from among civil servants or other categories of personnel from public authorities or institutions, and a Directorate made up of minimum 3 members, in accordance with the provisions of the Companies Law no. 31/1990, republished, with subsequent amendments and additions. The term of office of the first members of the Supervisory Board is 2 years.
At the time of the start of operation, the bank will take over from Banca de Export-Import a Romania Eximbank – SA the powers of the Investment Fund of the Three Seas Initiative, together with the participation in its capital and the funds related to the participation in the activity of the Fund and in the actions initiated by its shareholders, in order to promote the projects advanced by Romania.