IDB signs first guarantee agreement with CEC Bank for strategic public investment projects

The Investment and Development Bank (IDB) and CEC Bank have signed the first agreement for granting individual guarantees to finance public sector entities."Administrative-Territorial Units (UATs), public utility companies, state-majority enterprises of local or national interest, as well as public institutions, will gain easier access to financing through guarantees provided by the IDB. This initiative supports the development of strategic projects that are essential to communities ? from the modernisation of water and sewage networks to increasing energy efficiency and the digitalisation of local and regional public services. The signing of this first agreement marks the beginning of a stable institutional framework for guaranteeing public projects, in line with Romania's commitments to sound financial governance, transparency, and efficient use of public funds," reads a CEC Bank press release.CEC Bank is the first financial institution to sign such a guarantee agreement with the IDB, which plans to conclude similar agreements with several other commercial banks in the near future.The IDB guarantees support projects in key areas for community development such as public utilities (water, sewage, energy), education (renovation and equipment of schools), healthcare (hospitals, health centres), renewable energy, digitalisation, regional development, and the modernisation of local public infrastructure, as well as access to European funds ? including the NRRP and other EU programmes.For this programme, the IDB provides guarantees totalling 2.1 billion lei over the next three years, intended exclusively for public beneficiaries.The individual guarantees issued by the IDB have a minimum value of 5 million lei and a maximum of 150 million lei. The maximum guarantee period is 15 years, with a guarantee rate of up to 80%."Supporting projects developed by public utility companies and state-owned enterprises of local or national interest has always been a key priority for CEC Bank. This partnership adds a major advantage ? the Investment and Development Bank's guarantee, which reduces risks and facilitates quicker access to sustainable financing. The collaboration with the IDB represents a significant benefit for all project developers in strategic sectors vital to communities," said Bogdan Neacsu, CEO of CEC Bank, quoted in the release.The Investment and Development Bank is the only development bank fully owned by the Romanian state, through the Ministry of Finance. It was established at the end of 2023 under the National Recovery and Resilience Plan (NRRP).CEC Bank is Romania's oldest financial institution. Founded in 1864, it currently operates the country's largest branch network, with over 1,000 offices and local units.