Support granted to exports, one of the economic growth sources, is taken somewhat “lightly” by the Cabinet, as the amounts included in this year’s budget draft are considered relatively low by those directly concerned.
In general, the state has done too little for exports over the past decade, as compared with other countries neighbouring Romania. Last years’ economic growth relied a great deal on exports and will continue to do so this year, as well.
“The 800bn lei allocated to expenses aimed at encouraging export production and export are less than insufficient. It is a start, though,” said Dumitrache Dima, director general of the National Association of Romanian Exporters and Importers (ANEIR).
However, Dima explains that few exporters take loans, mainly since the crediting industry in Romania is dead. “As for export insurance, it’s not even worth mentioning here. Few people have heard about it, anyway,” he claims.
The 2001 budget draft specifies that the total volume of expenses destined to encourage export production and export are set at 800bn lei, that is about $28 million.
Half of this money goes to subsidisation of short-, medium- and long-term loan interest rates, granted by Banca de Export-Import a Romaniei (Romania’s Export-Import Bank) – Eximbank and by the commercial banks, for export production and export of machinery, equipment, complex installations and construction of objectives abroad, as well as for other short-term credited exports, conducted in 2000 and 2001.
Another 350bn lei will go, according to the budget draft, to encouraging complex objectives and long-cycle manufacturing.
A little above 70% of the 350bn lei (that is 250bn lei in absolute value) will be used for interest premiums, 50bn lei for export guarantees and 50bn lei for the insurance-reinsurance fund of short-, medium- and long-term export credits, export guarantees and Romanian investments abroad.
“The funds as they are now are somewhat higher than last year, that is about 100bn higher, but I think they could have done better. Perhaps this is all the state can do at the moment,” Mariana Diaconescu, Eximbank president, told Ziarul Financiar.
She said that support for exports and export production did not come from the Government only, though, but from external lines of credit Eximbank had obtained and would obtain by itself.
The state also allots 50bn lei for the insurance and reinsurance of credits obtained for producing goods and services to be exported.
Although this seems little money, Mariana Diaconescu says “it is relatively accurate, considering the insurance and reinsurance of export activities conducted last year.”