Such approaches as the "EU funds are money given for free, what can we do to get it?," are a trap firstly because they are not free since additional money is needed, either from the entrepreneur or from the bank, and lately it has been apparent that a lot of projects were cancelled precisely because they lacked co-funding, says Ciprian Păltineanu, head of the financing & advisory division of UniCredit Ţiriac Bank.
"Becoming involved in a project with EU funding also means accumulating liabilities, which puts pressure on a company's cash flow, which is a very important aspect at this time. Another issue is to what degree boosting production capacity is a welcome opportunity, because at present one should ideally maximise sales using current capacities. It is true that equipment prices are very low now and that very good discounts can be negotiated, but in the absence of demand, projects to boost capacity become 'speculative' investments, which, unless they are the right size, end up generating high risk."
This spring Păltineanu took over at the helm of a newly-established area of expertise at UniCredit, which includes structured financing, syndicates, real estate financing, European funds, factoring, and consulting.
Păltineanu, 35, returned to Romania in 2006, after six years in New York and London, where he worked for the now defunct Lehman Brothers, and then for Credit Suisse.
Such approaches as the "EU funds are money given for free, what can we do to get it?," are a trap firstly because they are not free since additional money is needed, either from the entrepreneur or from the bank, and lately it has been apparent that a lot of projects were cancelled precisely because they lacked co-funding, says Ciprian Păltineanu, head of the financing & advisory division of UniCredit Ţiriac Bank.
"Becoming involved in a project with EU fund
