BUCHAREST (Romania), June 8 (SeeNews) - The European Commission (EC) said on Wednesday it has approved a 605 million euro ($648.6 million) Romanian state aid package for small and medium enterprises (SMEs) active in the construction sector which have been financially affected by the coronavirus pandemic.
The scheme was approved in the context of the Temporary Framework for State Aid and also includes supporting small scale construction projects launched by Romania’s administrative regions, the EC detailed as part of the press release.
As part of the scheme, investment guarantees or loans to cover working capital needs will be awarded, which can cover up to 90% of the loans awarded by lending institutions. The nominal value of all guarantees will be of approximately 505 million euro.
The guarantees will be no longer than 6 years.
Direct grants worth a total of 100 million euro will also be awarded, with a 2.3 million euro cap per beneficiary. These are meant to cover, among others, taxes related to state guarantees or, partly, loan interest.
The aid package’s overarching targets also include addressing the financial requirements of projects for the improvement of the energy efficiency of some of the target institutions, stimulating green energy investments, as well as fulfilling environmental objectives.
Either form of aid will be awarded no later than June 30th.
The EC announced on Monday the approval of a 153 million euro state aid package under the IMM Prod and Garant Construct schemes for Romanian SMEs and companies active in the construction sector.