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Romania OKs 502 mln euro boost for SME aid scheme

Jun 6, 2024, 3:26:55 PMArticle by Bogdan Todasca
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June 6 (SeeNews) - The Romanian government said on Thursday it has approved the expansion of the IMM Plus state aid scheme for small and medium-sized enterprises (SMEs) by 2.5 billion lei ($546.6 million/502.4 million euro), bringing the total to 15 billion lei.

Romania OKs 502 mln euro boost for SME aid scheme
Source: Romania's finance ministry Facebook page

The scheme’s expansion will ensure that an additional 2,300 companies will benefit from the necessary support for investments and working capital, bringing the total number of beneficiaries to 13,800, the finance ministry said in a press release.

The programme’s component of loan guarantees has been increased by 2.22 billion lei to 13.32 billion lei, while available grants have been boosted by 279.9 million lei to 1.68 billion lei.

The scheme’s expansion was driven by increased interest from businesses and local authorities as the initial 11.1 billion lei loan guarantee ceiling available until June 30, 2024 was nearly exhausted.

The legal framework for state aid allows budgets to be increased by up to 20% without notifying the European Commission.

The IMM Plus state aid scheme was approved by the Commission on April 8.

Loan guarantees cover 90% of the companies’ financing needs, excluding interest and fees. The loan ceiling for companies is 5 million lei for financing working capital and 10 million lei for investments.

Beneficiaries with investment or guaranteed loans can receive a grant based on factors like risk and administration fees and loan interest. The maximum grant per enterprise is 2.25 million euro for most sectors, but it's lower for agriculture (280,000 euro) and fisheries/aquaculture (335,000 euro). Local authorities also have a maximum grant of 2.25 mln euro.

(1 euro=4.9763 lei)

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