EximBank and the City Hall of Sector 4 in Bucharest have signed a financing agreement of 88,33 Million Lei, after the bank’s winning of a bid recently organized by the local public authority.
The loan agreement represents the financial solution that the City Hall of Sector 4 in Bucharest envisaged for the re-financing of an internal loan amounting at 183.4 Million Lei, out of which in 2009, from the respective allocation there have been implemented projects related to the modernization and rehabilitation of the street system and to the expansion of the sewage and water systems, that have now reached their closure.
„It is important to us to support the local public authorities in their efforts of creating the necessary framework for the local economic and social development and we are glad that we came up with a competitive offer that has succeeded in positioning us as a partner for optimizing the cash for the City Hall of sector 4. We have a good record in cooperating with the local public authorities and we aim at increasing our exposure on this segment, at becoming proactively involved in the projects related to regional and local development, taking into account that we are fully capacitated to offer products and services that are custom structured and may support the local administrative bodies in making their projects completely achievable.”, said Traian Halalai (photo), Executive President of EximBank.
Signing this loan agreement makes the City Hall of Sector 4 in Bucharest more flexible in using the local funds by reducing costs and releasing the payments for medium term loans thus allowing it to approach new investment projects.
”What Sector 4 needs now is an administrative approach focused primarily on stringency and well defined priorities. For that matter each project that the local authority is generating must be viable, realistic, perfectly adjusted to the imperative needs of the citizens and also financed accordingly. Thus, we have chosen to re-finance our debts, an operation that would led to effective allocations and increase of funds availability that will be further allocated to the priority investment projects for our community. We are delighted that we will be able to reach our objective with the support from the EximBank.”, said Daniel Băluță, Mayor of the Sector 4 in Bucharest.
The financial consultant of the City Hall of Sector 4 in Bucharest for this transaction was TUD, a consultancy company specializing in offering services, analytic instruments and financial forecasts.
„This project that will add up to our portfolio of more than 20 important clients, most of them local public authorities has been a challenge to us taking into consideration the loan amount (the absorption capacity of internal market) and the correlation between savings and different maturities (scenarios) of 10/15 years that are necessary for cash facilities; we have managed to succeed due to the expertise acquired during 10 years of structuring financial transactions specific to local public authorities.”, said Mihai Tudorancea, Managing Director with the consultancy company.
EximBank has been actively involved for almost 25 years in supporting and promoting the Romanian business environment by endorsing the local companies’ projects. Following the adjustments made to its business pillars along the time in order to adapt to the national and international economic challenges, EximBank is now capable of presenting to the corporate segment a products and services portfolio that attracts all companies, either SME or large companies, involved in international transactions or only operating locally.
Also, acting as State agent on the insurance and guarantees market, EximBank is the main channel for the public funds made available by the Romanian State to be infused in the local economy, thus contributing to increase of the local economy competitiveness.