EUR1B From EIB To Co-Fund Priority Projects In Transport Sector
Romania’s Government adopted on 20 December a bill approving the framework financing agreement between Romania and the European Investment Bank (EIB), worth EUR1 billion.
The money will be used to cover the state budget contribution as co-financing in priority projects in the field of transport, part of the Large Infrastructure Operational Programme (LIOP) 2014-2010.
The contract with the bank was signed on July 18 2017, in Luxembourg, by the Ministry of Public Finance and it will be implemented by the Ministry of Transport. The two ministries are going to conclude a subsidiary agreement for that purpose.
The loan is granted for up to 25 years, with a grace period of up to seven years and under very advantageous conditions in comparison with other financial instruments. The loan will be disbursed in 20 tranches, at the most, by December 31, 2024.
According to the public debt legislation, the subprojects granted by the EIB are partially pre-financed from the state budget. Subsequently, a part of this pre-funding is recovered from the amount borrowed. The bill will be sent to Parliament for debate and adoption.