A €500 million scheme to support Romanian companies affected by Russia’s invasion of Ukraine was approved by the European Commission.
Romania notified the Commission, under the Temporary Crisis Framework, that it plans to grant companies across sectors state aid in the form of guarantees on loans or subsidised loans.
In light of the economic uncertainty caused by the war in Ukraine, the scheme aims at ensuring that companies in need can access enough financial resources.
The measures are open to small and medium-sized enterprises (with an annual turnover above €4 million) and large companies across sectors with some exceptions, such as gambling and betting activities, insurance, real estate activities, energy and fuel distribution and trade. Financial and credit institutions will also be excluded, the Commission noted.
Under the first measure, with an estimated budget of approximately €300 million (about 1,500 million lei), the guarantees will cover up to 90% of the loan or lease principal. Losses will be sustained proportionally by the credit institutions and the Romanian state.
The budget allocated for the second measure, under which the aid will take the form of subsidised loans, is approximately €200 million (about 1,000 million lei).
The Commission found that the Romanian scheme is in line with the conditions set out in the Temporary Crisis Framework, and the maturity of the guarantees and loans will not exceed six years. The financial support can only be granted by 31 December 2023.
(Bogdan Neagu | EURACTIV.ro)
Source: euractiv.com
