Investment fund manager Mozaik Investments has been approved to manage EUR 25 million worth of venture capital under Romania's National Recovery and Resilience Plan (PNRR) that is administered by the European Investment Fund (EIF), the Ministry of European Investment and Projects (MIPE) reported on Tuesday.The Investment Committee designated by the Romanian Government for the Recovery Equity Fund (REF) approved funds for a new investment fund that will receive an allocation under PNRR. Managed by the European Investment Fund, the PNRR venture capital instrument finances funds that invest in small and medium-sized enterprises, mid-cap enterprises and infrastructure projects.Mozaik will focus on funding SMEs in Romania and Central and Eastern Europe that will get significant minority stakes and support entrepreneurs through strategies to quickly scale operations, enter new markets or develop new product lines, mergers and acquisitions operations, implementing corporate governance and supporting the management team.The fund will be generalist and designed to invest in 7-9 companies primarily operating in retail and specialised distribution, healthcare, food production and retail trade, logistics, financial services and technology.According to what was discussed at the working meeting of the Investment Committee on July 25, Mozaik will receive investment funds under PNRR to the tune of EUR 25 million euros, that will also be supported by contributions from private investors.In December 2021, the Government of Romania and the European Investment Fund signed an agreement on the establishment of Romania Recovery Equity Fund of Funds, toward which a contribution of EUR 400 million is specified off Component 9 of PNRR - "Support for the private sector, research , development and innovation." It is anticipated that by 2026 approximately twenty investment funds will get resources to invest in Romanian companies.The call for the selection of financial intermediaries was launched in August 2022 and is still open.The National Recovery and Resilience Plan, approved in October by the Council of Europe, has a total budget of EUR 29.2 billion euros. Romania qualifies for EUR 14.2 billion from the European Union in the form of non-reimbursable funding and EUR 14.9 billion in loans under PNRR within the Mechanism for Recovery and Resilience.PNRR is built on six pillars that cover Romania's needs and simultaneously follow the priorities of the European Union: green transition, digital transformation, smart growth, social and territorial cohesion, healthcare and resilience and next generation policies. The plan includes measures regarding sustainable transport, education, healthcare, renovation of buildings and digital transformation in public administration.Component 9 of PNRR, called "Support for the private sector, research, development and innovation", includes a series of reforms and investment aimed at strengthening the business environment in Romania, including "Investment 2 - Financial instruments for the private sector." Investment 2 includes several sub-components in the form of financial instruments, totalling EUR 1.25 billion, including the creation of the Recovery Equity Fund of Funds on an allocation of EUR 400 million.The Recovery and Resilience Mechanism is the centerpiece of the NextGenerationEU initiative that will provide up to EUR 800 billion euros (in current prices) to support investments and reforms throughout the European Union. PNRR is part of an unprecedented coordinated EU response to the crisis caused by the COVID-19 pandemic aimed at addressing common European challenges by adopting the green and digital transition, as well as strengthening economic and social resilience and the cohesion of the single market.
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Road crews have begun snow removal on Romania’s spectacular mountain road known as Transfăgărășan. Since there is less snow than in other years, the road could be opened much earlier than the usual date of July 1, according to authorities. Transfăgărășan, Romania’s second-highest road after Transalpina, is being cleared of snow so it can be […]
