Romanian banks extend EUR 2.85 bln loans to SMEs under Govt. backed program
Local banks have granted 20,000 loans to Romanian SMEs under the IMM Invest program so far. The value of these loans is RON 14 billion (EUR 2.85 bln), or some 1.4% of GDP, said Stefan Nancu, head of the state body (FNGCIMM) that manages…
Andrei Chirileasa · Journalist
· Updated · 1 min read
Local banks have granted 20,000 loans to Romanian SMEs under the IMM Invest program so far. The value of these loans is RON 14 billion (EUR 2.85 bln), or some 1.4% of GDP, said Stefan Nancu, head of the state body (FNGCIMM) that manages this Government program aimed at helping small and medium-sized companies, Agerpres reported.
Under this program, the state guarantees up to 90% of the bank loans and covers interest costs until the end of the year. The loans can be extended for a period of up to six years.
The Romanian Government increased in August the target for the total volume of loans guaranteed in this program from RON 15 bln to RON 20 bln. In the law regulating the program's functioning, the Parliament further raised the limit to RON 30 bln. But the Government has not yet notified the new limit to the European Commission, which is supposed to approve such programs that include a state aid element.
In related news, the Economy Ministry announced that it would open the application period for the working capital grants for SMEs on Thursday, October 22. Under this program, local SMEs from business sectors affected by the COVID-19 pandemic, can apply for working capital grants of up to EUR 150,000.
The total budget for this program is EUR 350 mln, mostly coming from EU funds.
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