Romania signs EUR 16.7 bln financing agreement with EC under SAFE scheme

European Commissioner for Budget Piotr Serafin signed the financing agreement for Romania under the SAFE program, through which Romania will receive EUR 16.7 billion in low-interest loans for financing defence procurement, the Ministry of Finance announced, cited by Digi24.

However, domestic legislation aimed at signing the procurement contracts was referred to the Constitutional Court by both the Ombudsman and the Social Democrat leader of the Chamber of Deputies, Sorin Grindeanu.

As soon as the agreement enters into force, Romania will receive a 15% pre-financing, equivalent to approximately EUR 2.5 billion. The agreement sets out the rules of the loan, available until the end of 2030, with the first payment request being submitted in October of this year.

All tranches granted will have an extended maturity of 45 years, also benefiting from a grace period of one decade.

"SAFE is not just a financial instrument, but an investment in Romania's security and resilience," said interim finance minister Alexandru Nazare.

The funds are intended for investments in defence, strategic infrastructure, and the consolidation of the European industry in the field.

For Romania, the funding targets military equipment projects, technology, associated infrastructure, and investments of strategic relevance. Of the total, approximately EUR 4.2 billion is allocated to road transport infrastructure of national interest, and the rest of the projects are intended for the field of defence and security.

Nazare also highlighted the impact of the program on the infrastructure in the Moldova region.

"Through SAFE, Romania is not only investing in defence and security, but is also creating perhaps the most important opportunity in recent decades to connect Moldova to the major European infrastructure," the acting minister said.

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