May 20 (SeeNews) - Romania's parliament on Wednesday passed legislation which doubles the ceiling for credit guarantees for small and medium-sized enterprises (SMEs) affected by the coronavirus crisis to 30 billion lei ($6.8 million/6.2 million euro).
A total of 308 MPs out of 465 voted in favour of the bill, while two abstained, data posted on the lower chamber of parliament website showed.
The new SMEs credit guarantees will have to be approved by the European Commission to take effect.
This is the second time this year when the ceiling for loan guarantees under the 'IMM Invest' programme is being raised.
In March, the government raised the ceiling to 15 billion lei from 700 million lei in order to support SMEs affected by the coronavirus pandemic.
The European Commission approved the 15 billion lei scheme in April, under the state aid temporary framework .
SMEs active in the entertainment, hospitality and restaurant business in Romania are among the companies hit worst by the coronavirus outbreak in the country.
SMEs active in the entertainment sector reported a 72% annual drop in turnover in April and a monthly decrease of 58%, local fintech startup Smart Bill said earlier this month, citing the results of a survey it has conducted among 20,000 Romanian SMEs.
Another survey released by consultancy PwC Romania in March showed that the operations of 37% of Romanian companies have been fully or partially interrupted since the country declared a state of emergency due to the COVID-19 pandemic. Some 20% of companies have reduced their activity since the coronavirus outbreak started, according to the PwC Romania HR Barometer.
(1 euro=4.8421 lei)