European funds absorption is ‘unsatisfactory’
Mugur Isărescu, NBR Governor, says that up to now Romania has absorbed 70 percent less European funds than in 2009.
Articol de Iulian Olescu, 01 Decembrie 2010, 09:37
European funds are crucial for the progress of Romania, Mugur Is?rescu, Governor of the National Bank of Romania (NBR) stated.
He says co-financing is important for enabling economic recovery and ending the credit crunch, but it also boosts trust in the Romanian economy.
Mugur Isărescu announced at the seminar on European funds organized by the NBR, that this year’s volume of European funds that have been absorbed is unsatisfactory.
‘In the first nine months of 2010 Romania absorbed 70 percent less European funds than in 2009, so there are slim chances that this year’s volume will match last year’s. I don’t see how we can change that. This year there will be more funds for agriculture and rural development, but as far as structural funds and cohesion funds are regarded, the situation is downright depressing – less than half over last year in nine months,’ stated Mugur Isărescu.
The businessmen that applied for European funds said that they had trouble with the red tape and the large number of evaluation institutions.
The businessmen also complained that it takes a long time for a project to be approved, they complained about the variation in the exchange rates during the time between signing a contract and making the payment and that banks aren’t open to co-financing.
Translated by Gabriela Lungu
MA Student, MTTLC, University of Bucharest
