Romania's Finance Ministry is working on the legal framework for setting up the National Development Bank of Romania (BNDR), a project that will be financed by the European Commission through the Structural Reform Support Service, according to a document from the National Commission on Strategy and Prognosis (CNSP), quoted by Ziarul Financiar. The Government will contribute RON 1 billion (EUR 210 million) to the new bank's capital.

CNSP argues that the financial sector, primarily the banks, has failed to provide adequate support for the development of infrastructure and other projects with systemic impact, which is why this new institution is needed.

The development bank should provide financing and related services for the development of infrastructure, public interest services, regional development, R&D activities, environmental protection, and the support and development of small and medium-sized enterprises, according to the ministry's document.

The Senate approved in early 2018 the establishment of the Romanian Development Bank (BDR), which will aim to support entrepreneurship and socio-economic development. The draft law provides that the BDR is an autonomous and independent legal entity capable of concluding any contract for meeting its goals, may participate in public procurement and may own or dispose of any assets.

editor@romania-insider.com

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