In brief
- The Government has authorised the Investment and Development Bank to participate, in the name and on the account of the state, with 50 million euro in the Three Seas Initiative Infrastructure Fund of Funds.
- The sum is a contribution to the fund’s share capital. The fund is managed by the European Investment Fund, and the money comes from the state budget, through the Ministry of Finance, General Actions chapter.
- The Ministry of Finance transfers the leu equivalent at the National Bank rate on the day of payment, plus a 3% margin for possible exchange differences. Whatever is left unused is returned within 10 days.
Published: Official Gazette of Romania (Monitorul Oficial) No. 660 of 10 August 2026
In force from: 10 August 2026
Romania is entering a European infrastructure fund with its own money, and the vehicle it uses is the state development bank. The decision published on Monday puts a concrete figure on a participation discussed for years: 50 million euro, as share capital, not as a loan. Government Decision No. 585 of 6 August 2026 adds a new article to the founding act of the Investment and Development Bank and was published in Official Gazette of Romania No. 660 of 10 August 2026. It is the second major financing decision in recent days, after the August government securities programme, but this time the state is not borrowing, it is investing.
The mechanism is easy to describe and unusual in form. The Investment and Development Bank is not investing its own money; it acts “in the name and on the account of the state”. It is, in practice, the hand through which the Ministry of Finance moves money into an international fund that Romania could not join directly.
The fund in question is the Three Seas Initiative Infrastructure Fund of Funds, managed by the European Investment Fund. The Three Seas Initiative brings together central and eastern European states between the Baltic, the Adriatic and the Black Sea, and the associated investment fund finances transport, energy and digital infrastructure projects in the region. The participation is structured as a contribution to the fund’s share capital, in line with the contractual participation documentation, not as a donation or a loan.
The legal basis of the operation is Article V of Government Emergency Ordinance No. 126/2024, as subsequently amended, and the present decision transposes it into the bank’s own rules by inserting Article 181 into Government Decision No. 1,204/2022, the act that established the bank and set out its organisation.
What it changes in practice
The money is budgetary, not the bank’s. The contribution comes from the state budget, through the Ministry of Finance, General Actions chapter. The bank is the technical intermediary of the payment, not an investor on its own account, and the risk and reward of the participation remain with the state.
Payment is made in lei, with a 3% exchange reserve. The Ministry of Finance transfers to the bank the leu equivalent at the National Bank of Romania rate applicable on the date of payment to the bank, plus a 3% margin to cover any exchange rate difference at the moment of the actual foreign currency payment to the fund. It is a practical solution for the gap between the two moments.
Any surplus does not stay with the bank. The leu amount left unused after the currency exchange is returned to the Ministry of Finance within 10 days of the external payment. The 3% margin is a buffer, not a commission.
Romania becomes a shareholder, with the rights that follow. Being a contribution to share capital, the participation gives the state a position in the fund’s structure, not merely the status of contributor. The concrete effects on projects in Romania depend, however, on the investment decisions of the manager, that is of the European Investment Fund.
What has changed compared with the previous situation
Until now, Government Decision No. 1,204/2022 governed the establishment, organisation and functioning of the bank but contained no express authorisation for this type of operation. The new Article 181 adds it, specifically and with a determined amount.
The substantive difference from other public financing instruments lies in the nature of the operation. This is not a subsidy, a state aid scheme or a securities issue, but a stake in the capital of an investment fund managed by a European institution. The state takes on the position of investor, with what that means in terms of possible return and of risk.
The decision sets no payment calendar and no performance conditions. It authorises the participation and fixes the financial mechanism, leaving the rest to the contractual participation documentation, which is not published in the Official Gazette of Romania.
Advantages and disadvantages
What it improves
- It gives Romania a shareholder position in a regional infrastructure fund, in an area where the need for transport, energy and digital financing is considerable.
- It uses an existing structure, the state development bank, instead of creating a new vehicle for a single operation.
- The exchange rate mechanism is realistically designed: the 3% margin covers the gap between the transfer in lei and the payment in euro, and returning the surplus within 10 days prevents public money from being tied up.
- The amount and the legal basis are public and verifiable, which is not the case with every state participation in international financial vehicles.
What remains a problem
- The contractual participation documentation, which sets out Romania’s actual rights, is not published. From the decision alone one cannot learn the expected return, the state’s voting rights or how it may exit the fund.
- There is no commitment that the money will return in the form of projects on Romanian territory. Investment decisions belong to the fund manager.
- The decision lays down no deadlines: neither for paying the amount, nor for reporting the results of the participation to Parliament or to the public.
- The 50 million euro leaves the state budget in a year of heavy spending pressure, and the return, if it comes, comes years later.
- As a capital contribution, the sum is exposed to investment risk. Unlike a loan, there is no guarantee that the principal will be recovered.
Practical advice
- If you work in infrastructure, energy or digital: follow the European Investment Fund’s calls for the Three Seas Initiative vehicles. The fund invests through intermediary funds, so access is usually via those rather than directly.
- Do not confuse this fund with classic EU funds. It is not grant financing and does not work through applications with an applicant’s guide, but on the logic of capital investment.
- If you track budget execution: the amount appears under the Ministry of Finance budget, General Actions chapter, not under a line ministry. That is where to look for it.
- For the real cost: remember that payment is made at the National Bank rate of the transfer day, with a 3% margin, so the leu equivalent is not known until execution.
- If you want the details of the participation: the decision refers to the contractual documentation, which is not published. A request for information of public interest to the Ministry of Finance is the way in, with the usual 10-day or 30-day deadlines.
Frequently asked questions
Who actually provides the money?
Is this a loan or an investment?
What is the Three Seas Initiative Infrastructure Fund of Funds?
Why is there a 3% margin?
Will the money come back as projects in Romania?
When does the decision enter into force?
Original text of the legal act
The text below is reproduced in Romanian, the official form of publication.
The full text, as published in the Official Gazette of Romania
Official Gazette of Romania no. 660 of 10 August 2026 16 pages PDF, 117 KB the act starts on page 3
Open the official PDFDownload the PDF
The viewer is not shown on small screens. Use the buttons above to open or download the file.
This article is for informational purposes only and does not constitute legal advice. For specific situations, consult a licensed attorney or tax advisor.