Such approaches as the "EU funds are money given for free, whatcan we do to get it?," are a trap firstly because they are not freesince additional money is needed, either from the entrepreneur orfrom the bank, and lately it has been apparent that a lot ofprojects were cancelled precisely because they lacked co-funding,says Ciprian Păltineanu, head of the financing & advisorydivision of UniCredit Ţiriac Bank.
"Becoming involved in a project with EU funding also meansaccumulating liabilities, which puts pressure on a company's cashflow, which is a very important aspect at this time. Another issueis to what degree boosting production capacity is a welcomeopportunity, because at present one should ideally maximise salesusing current capacities. It is true that equipment prices are verylow now and that very good discounts can be negotiated, but in theabsence of demand, projects to boost capacity become 'speculative'investments, which, unless they are the right size, end upgenerating high risk."
This spring Păltineanu took over at the helm of anewly-established area of expertise at UniCredit, which includesstructured financing, syndicates, real estate financing, Europeanfunds, factoring, and consulting.
Păltineanu, 35, returned to Romania in 2006, after six years inNew York and London, where he worked for the now defunct LehmanBrothers, and then for Credit Suisse.
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