FINANCING & EU FUNDS

Retrospective and perspective

Marius Radu, EU Funds Coordinator

Bucharest, 20th of September 2014

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AGENDA

2007 – 2013 EXPERIENCING

2014 – 2020 INNOVATING

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2007-2008

Approval of the EU Funds national framework in Romania – Cadrul Strategic

National de Referinta (CSNR)

Certifying the EU Funds institutions in Romania

Approval of the Operational Programmes (9 OPs + Cross-border

Programmes)

Approval of the first Guide of Applicants

Launching the first calls for proposals

2007 – 2013

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Romania obtained the

approval from EC in

August 2014, counting

the 11th approved

Partnership Agreement.

No Member State Date for sending

the PA to EC Date of approval by EC

1 Denmark 5-May

2 Germany 22-May

3 Poland 23-May

4 Greece 23-May

5 Latvia 20-Jun

6 Lithuania 20-Jun

7 Estonia 20-Jun

8 Cyprus 20-Jun

9 Slovakia 20-Jun

10 Portugal 30-Jul

11 Romania 31-Mar 6-Aug

12 Bulgaria 7-Aug

13 France 8-Aug

14 Nederlands 22-Aug

15 Czech Republic 28-Aug

16 Hungary 29-Aug

17 Finland 17-Feb

18 Malta 1-Apr

19 Slovenia 10-Apr

20 Sweden 17-Apr

21 Austria 17-Apr

22 UK 17-Apr

23 Italy 22-Apr

24 Spain 22-Apr

25 Croatia 22-Apr

26 Ireland 22-Apr

27 Belgium 23-Apr

28 Luxembourg 30-Apr

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2009

Committed funds rate – 16 %

Absorption rate – 1 %

UNICREDIT TIRIAC BANK

Launching the first EU Funds financing products

Approx. EUR 27 mn loan facilities approved in 6 months

Financed Programmes: PNDR, POSCCE and POR

2007 – 2013

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2010

Committed funds rate – 42 %

Absorption rate – 3 %

Legislative incentive: HG 606 allows pledging in bank’s favour the assets to

be bought within the project

UNICREDIT TIRIAC BANK

UniCredit Tiriac Bank offers full range of products: letter of guarantee for

advance payment, credit facilities for non-eligible expenses, including VAT

Financing complex projects run by private beneficiaries, also financing public

authorities

Approved facilities / year – doubled, over EUR 55 mn

2007 – 2013

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2011

Committed funds rate – 65 %

Absorption rate – 6 %

Comfort letter mandatory for project submission

UNICREDIT TIRIAC BANK

Financing extended to all programmes: POP, POSDRU, State Aid

Schemes, including “de minimis”, Cross-border Programmes

Enhancing collaboration with national guaranteeing institutions

EU Funds project financing reaches new peak: over EUR 230 mn

approvals / year

Reaching 20 % market share in private beneficiaries EU Funds financing

2007 – 2013

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2012

Committed funds rate – 78 %

Absorption rate – 12 %

Ministry of European Affairs, currently Ministry of European Funds

UNICREDIT TIRIAC BANK

Implementing EIF Agreement for First Loss Portfolio Guarantee –

JEREMIE – financed from POSCCE 2007-2013

Enhancing the collaboration with RBA, FIC, Ministries / Managing

Authorities, proposals sent for improving EU Funds absorption

Implementing APIA agreements for financing beneficiaries of agricultural

subsidies (crops / animals)

2007 – 2013

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2013

Committed funds rate – 93 %

Absorption rate – 27 %

N+3 Rule extended – Romania escapes from loosing significant EU funding

UNICREDIT TIRIAC BANK

Surpassing EUR 600 mn

approved facilities

(cumulated) for

non-reimbursable projects

Signing the EBRD Agreement for RoSeff Programme, facilitating new

investment loans for energy efficiency projects

2007 – 2013

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16,2%

42,4%

64,9%

77,6%

92,9%

103,0%

97,0%

0,9% 2,5%

5,6%

11,5%

26,5%

59,0%

78,0%

0%

20%

40%

60%

80%

100%

120%

2009 2010 2011 2012 2013 2014 (est.) 2015 (est.)

Rata contractare % Rata absorbtie %

http://www.fonduri-ue.ro/ for 2009-2013 and

UniCredit Tiriac Bank estimation for 2014-2015

COMMITTED FUNDS RATE AND ABSORPTION RATE

– Evolution for Structural Instruments –

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2014 2015

Committed funds rate - estimation 103 % 97%

Absorption rate - estimation 59 % 78 %

Signing the Partnership Agreement – August 2014

Approval for POs and launching the first calls for proposals

UNICREDIT TIRIAC BANK

JEREMIE – free of charge guarantee offered until 31st of December 2014

Investment loans from EBRD and EIB sources

Facilities based on APIA agricultural subsidies

Implementing EU and National State Aid Schemes approved projects

Monitoring post-implementation for EU Funds projects

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17% more funds on Cohesion, 90% more on subsidies, 24% more in total

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ROMANIA - EU FUNDS

2007 - 2013 bln. € 2014 - 2020 bln. € Variation

(+/- %)

Transportation 4.43 Large Infrastructure 9.41 6%

Environment 4.41

Regional Programme 3.97 Regional Programme 6.70 69%

Human Resources 3.48 Human Resources 4.22 21%

Competitiveness 2.55 Competitiveness 1.33 -48%

Administrative Capacity 0.21 Administrative Capacity 0.55 164%

Technical Assistance 0.17 Technical Assistance 0.21 24%

TOTAL COHESION POLICY 19.21 TOTAL COHESION POLICY

(performance reserve of 7% included) 22.42 17%

Rural Development 8.22 Rural Development

(performance reserve of 6% included) 8.02 -2%

Fishery 0.23 Maritime and Fishery 0.17 -26%

TOTAL ROMANIA (w/o agriculture

subsidies) 27.66

TOTAL ROMANIA (w/o agriculture

subsidies) 30.61 11%

Agriculture subsidies (Pillar I) 5.59 Agriculture subsidies (Pillar I) 10.60 90%

TOTAL GENERAL ROMANIA* 33.25 TOTAL GENERAL ROMANIA*

(performance reserve included) 41.21 24%

* = territorial cooperation programmes not included

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2014-2020

EU Funds allocated to Romania: over EUR 30 bln + more than EUR 10 bln as

agricultural subsidies from European Agricultural Guarantee Fund (EAGF)

EU Funds allocated to private companies – estimation of only EUR 3 bln (less

than 10 % of the EU Funds allocated to Romania, EAGF subsidies excluded)

Simplification of the institutions architecture (less Managing Authorities)

UNICREDIT TIRIAC BANK

Focus on SMEs – POC, POR, PNDR

Strategic area: R&D, innovation, energy efficiency

Financing agriculture feasible projects, pre-financing the subsidies

National and European expertise in implementing financial instruments

2014 - 2020

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Products cover all types of expenses, equity needed

2014 – 2020

TOTAL COST

ELIGIBLE EXPENSES NON-ELIGIBLE EXPENSES

NON-REIMBURSABLE CO-FINANCING

Advance

payment

Post-implementation

payment

Letter of

guarantee

Bridge loan/

Direct payment

OTHERS VAT

Investment loan VAT Line Equity

CONTACT and USEFUL LINKS

http://www.unicredit-tiriac.ro/fonduri-europene/

http://www.unicredit-tiriac.ro/fonduri-europene/garantia-jeremie

http://unicredit-tiriac.ro/imm/credite/credite-din-surse-berd

http://unicredit-tiriac.ro//imm/credite/credite-apia

fondurieuropene@unicredit.ro

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