Geoana: CEC could become bank for SMEs

PSD Senator Mircea Geoana stated in a TV show on Pro TV that “progressive discussions” are being had towards transforming CEC into a bank for developing SMEs, since the category of Romanians most seriously damaged by capital and financing during this crisis are entrepreneurs, Mediafax notes. “A development bank should be created, one that relies on CEC and other collateral instruments; we will make a proposal in this respect on Tuesday (editor’s note – at the Aspen Institute conference). I cannot accept a banking system that has stopped financing the real economy during the crisis,” Geoana stated.
He also pointed out CEC will continue to serve small depositors and benefit from the Romanian state’s sovereign guarantee, but it will finance and direct its investments and loans primarily to SMEs and the agricultural industry. “There is a certain type of advanced thinking on this topic. At the moment, I could not say whether or not the exact formula we have in mind for national and international professionals will be assumed by the Government, but something will happen,” he explained. “I am certain the rather progressive idea of using Eximbank, the second largest state bank in Romania – I am referring to economic patriotism and the inner mechanisms of the Romanian state – to possibly provide additional financing and thus stimulate industrial policies, as well as Romanian exports, would be beneficial. We would like to create an infrastructure fund, a type of infrastructure bank to which the state can partly contribute; we can collect money off the markets and, in addition to European and public funds that should be spent more wisely, we can bring in capital and energy into the economy,” Geoana said further.
The senator went on to say this “economic patriotism” is not at all directed against foreign capital. Romania should do more than “sit nicely in her corner and write down what others dictate;” our country should be brave enough to propose another model of society, Mircea Geoana concluded.

Leave a Reply