Investment and Development Bank plans to increase capital by 100 million euros in 2026

 The Investment and Development Bank (BID) plans to increase its capital by 100 million euros in 2026 to boost its financial intervention capacity, support a larger volume of investments and diversify the financial instruments available to companies, particularly SMEs and the public sector.'BID intends to raise 100 million euros, a key step in enhancing financial intervention capacity, supporting higher investment volumes and diversifying instruments available for companies, especially SMEs and the public sector. A major objective for 2026 is completing the pillar-based evaluation process conducted with the European Commission, which will allow BID to act as an implementing entity and direct manager of European financial instruments,' the bank said in a press release.Next year, BID will also incorporate the Modernisation Fund as a financing source for investments in the transition to a green economy, critical infrastructure, energy efficiency and projects with long-term climatic and economic impact.Until the new four-year mandates are finalised, BID is led by an interim management team consisting of Raluca Nicolescu, director general, and deputy directors Simina Bossennec and Razvan Prundeanu.'2026 is the year in which we turn the foundations built over the past two years into direct impact for the Romanian economy. We already have active financial products in the market for both the entrepreneurial environment and the public sector, as well as projects in new areas, such as the management of financial instruments and other forms of support financed by the Modernisation Fund. We have the advantage of building on an already solid foundation, which makes us confident in BID's development and consolidation in the market,' said BID interim Director General Raluca Nicolescu.In 2026, BID will continue to scale existing products, including guarantees for SMEs and the public sector, and will develop new financial mechanisms aligned with national and European priorities, including green projects, strategic investments and regional development.Between 2023 and 2025, BID completed a crucial stage of institutional development, establishing governance frameworks, operational infrastructure and technical capacity to operate as a development bank.Currently active financial instruments for SMEs, the public sector and regional development include the SME portfolio guarantee, the individual guarantee for public sector investments and the Regional Participation Fund.Regarding the SME guarantee, BID has signed agreements with nine financial intermediaries, including Romania's largest banks and non-banking financial institutions dedicated to SME financing. The guarantee is expected to support approximately 26,000 SMEs over the next three years, generating financing of 12.6 billion lei through partner banks and Non-bank Financial Institutions (NBFIs).In the public sector, BID guarantees support local and regional infrastructure and development projects, with a budget of 2.2 billion lei over the next three years and agreements signed with six commercial banks.The Regional Participation Fund, managed by BID, has a total allocation of over 233 million euros, mostly from the North-East, South-East and Bucharest-Ilfov Managing Authorities under the Regional Programmes of the 2021-2027 Cohesion Policy, co-financed by the State Budget.BID is the only development bank fully owned by the Romanian state through the Ministry of Finance, created at the end of 2023 under the National Recovery and Resilience Plan.