In view of the close EU ascension, Romanian local authorities face more and more severe budget constraints that have an impact on the development of their communities. Supplementing the local revenues by other means that increasing the taxes is not anymore a challenge, but has become a necessity.

Local government borrowing is one of the most recent methods allowing local communities in Romania to raise additional funds for their development projects. In order to finance certain infrastructure projects, the public authority issues payment instruments to be further traded on trade finance market.

Under these circumstances, the Municipality of Constanta, through its subsidiary SCIL Confort Urban, had concluded a contract for roads rehabilitation with Ashroich Romania using promissory notes as payment instrument. SvWP acted as financier in this transaction, acquiring the notes from the beneficiary and further trading them on the financial assets secondary market.