Investment & Fund Management

The European Investment Fund (EIF) partnered with the Romanian Ministry of European Funds to establish the Competitiveness Fund-of-Funds, which aims to finance small and medium-sized enterprises (SMEs) in Romania. The fund is allocated EUR 59 million, sourced from the Competitiveness Operational Programme 2014-2020, co-financed by the European Regional Development Fund (ERDF). This initiative specifically addresses the challenges faced by SMEs in accessing finance, particularly in the areas of entrepreneurship and innovation.

The fund is divided into two main components: EUR 40 million is dedicated to entrepreneurship and seed funds for innovative companies, while EUR 19 million is allocated for a portfolio risk-sharing loan instrument. This approach builds on the success of the previous JEREMIE initiative, which had catalyzed over 6,000 new loans and investments totaling more than EUR 600 million. The Romanian Minister of EU Funds emphasized the importance of utilizing financial instruments to support future economic growth, indicating a shift from traditional grants to more sustainable financial solutions.

The EIF's Chief Executive highlighted that the successful implementation of the JEREMIE initiative laid the groundwork for expanding the range of financial instruments available to support SMEs. This strategic move is expected to enhance the competitiveness of the Romanian economy by fostering innovation, research, and development, thereby addressing the low levels of support for these critical areas. The Competitiveness Operational Programme itself has a total allocation of EUR 1.58 billion, with a significant portion aimed at bolstering research, development, and information technology services in Romania.