ECONOMY FINANCE&BANKING

Finance Ministry to negotiate 300 million euros loan from EIB

The Public Finance Ministry will negotiate with the European Investment Bank (EIB) a 300 million euros loan to partly cover the state budget contribution to the environment investments comprised in Axes 3,4 and 5 of the Large Infrastructure Operational Programme, according to a Memorandum approved on Wednesday by the Romanian Government in its weekly sitting.
According to a government release to Agerpres, the facility extended by the EIB will contribute to increasing the use of structural and cohesion funds within the 2014-2020 budget years.
The relevant expenditure is used to promote the efficient use of resources by developing the water supply and waste water infrastructure and the waste management, the protection and conservation of biodiversity and the restoration of degraded ecosystems, the promotion of adjustment to climate changes, the prevention and management of the environment risks, etc., the release says.
‘The loan is concordant with the Romanian legislation in the public debt field; the sub-projects included by the EIB in the financing contract are pre-financed from the state budget, and subsequently some of this pre-financing is recovered from the loan and the rest of it from the European Commission. As a result, the loan doesn’t inflate the state budget expenditure,’ the document adds.
A similar vehicle, under implementation, was given by the EIB in 2008 for the operational programmes of transport, environment and economic competitiveness; it partly covered the state budget’s contribution to investments under these programmes co-financed from European funds within the 2007-2013 budget years, according to the said release.

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