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June 25, 2021

Costs below market level for EximBank products intended for companies involved in European projects

Costs for accessing EximBank products meant to pre-finance projects developed with European funds are presently below the market level since the interest rate margin for RON financing is pegged to 2-3% above ROBOR, according to the financial rating of the company. i.e. around 7-8%, Paul Ichim, vice-president of EximBank, announced recently in a seminar titled “How to get funds from the EU?”

“We have to make it clear: banks own enough liquidities to finance companies running projects on European funds. All depends, however, on the viability of the projects and on the way they are actually implemented,” the deputy president of EximBank further stated.

He added that it is vital that Romanian economy, the more so now, “should focus on drawing in European funds.”

EximBank offers companies and public authorities which run projects based on structural funds a package comprising credits for co-financing and pre-financing, as well as non-binding letters of intent or underwriting. Thus, according to the type of project financed from structural funds, EximBank can grant:

Investment loans meant for co-financing the company’s own share in the EU funded-project. By this product, a company which signed a financing contract with the management authority can obtain 100 per cent of the amount of eligible and non-eligible expenses corresponding to its own share.

Loans meant for pre-financing the needs of companies to cover the time elapsed between payments to providers during the project and the moment they receive the funds from the management authority. These can represent up to 100 per cent of the amount of European financing obtained.

Comfort letters – these may be included among the documents required in order to obtain the non-reimbursable funding – by this instrument the bank expresses its willingness to offer the company the necessary funds to support the project, provided it is accepted by the management authority in charge.

Guarantees – EximBank is able to guarantee those loans contracted by the companies at merchant bank in order to implement the projects running on structural funds.

Furthermore, EximBank has designed on its website a section devoted to EU funds which offers companies and public authorities all necessary information on drawing in European funds.

The section “EU funds” on the www.eximbank.ro website includes a description of bank’s financing offer available to companies running EU funded-projects and offers entrepreneurs an opportunity to find more general information supplied by the Authority for Coordinating Structural Funds within the Ministry of Public Finance, the manager of structural funds in Romania, namely:

– the steps to follow in compiling a financing folder;

– what it should contain;

– the stages for granting funding etc.

Banca de Export-Import a Romaniei EximBank – S.A. is a specialized institution running supportive activities designated for the Romanian business environment and the international trade by means of financial, guarantee and insurance tailored instruments directed at projects for the development of infrastructure, public utilities, regional growth, or uphold of R&D activities and environmental protection.

The bank has 12 branches in Bucharest, Bacau, Brasov, Constanta, Cluj, Craiova, Timisoara, Buzau, Oradea, Deva, Alba-Iulia and Iasi. For further information on products and necessary documents, economic operators may access www.eximbank.ro or may receive details by emailing informatii@eximbank.ro.

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