Newly-founded Romanian state bank to manage EUR 233 mln cohesion policy fund for SMEs

The Investment and Development Bank (Banca de Investiții și Dezvoltare - IDB), a development bank founded by the Romanian government in 2023, will manage the Regional Participation Fund for financing SMEs worth EUR 233.35 million, according to Cursdeguvernare.ro.

The Fund is formed by allocation disbursed by the North-East, South-East, and Bucharest-Ilfov Managing Authorities from the Regional Programs under the 2021–2027 Cohesion Policy, contributions from European funds (ERDF), and from the state budget.

"At the initiative of the Managing Authorities for the North-East, South-East and Bucharest-Ilfov Regional Programs, the Investment and Development Bank will manage the Regional Participation Fund for financing SMEs worth EUR 233.35 million," IDB announced.

The new instrument combines a low-interest loan with a grant component: zero-interest loans for up to 70% of the investment's value and grants of 40% of the investment value (upon successful completion of the investment).

"Interested SMEs can apply for financing through financial intermediaries that express their interest and that will be selected by the IDB by the end of 2025, following a transparent, non-discriminatory and objective procurement process," IDB's announcement also states.

According to the National Bank of Romania (BNR), Banca de Investiții și Dezvoltare was registered in the Register of Development Banks starting on January 3, 2025.

(Photo source: Banca de Investiții și Dezvoltare on LinkedIn)