RO Govt. to guarantee EUR 1.5 bln loans under three new schemes

The Romanian Government announced that it enacted by emergency ordinance four new schemes by which it aims to guarantee RON 7.5 bln (EUR 1.5 bln) loans in four sectors with key systemic importance, Profit.ro reported.

The schemes will have a grants component as well.

The four schemes are IMM Prod - for the industrialization of the economy, Rural Invest - for financing rural businesses, Garant Construct - for the construction sector and Innovations - for inventions and innovations.

The Government will guarantee 90% of the loans and may extend grants in the amount of up to 10% of the amount guaranteed plus the fees and commissions.

The budget for the grants components of the four schemes is RON 1.5 bln (EUR 300 mln).

The schemes will be implemented in the form of state aid schemes under which guarantees and grants are granted to cover part of the costs of the financing cost.

The goal is to unblock access to finance for companies that need liquidity to carry out investment projects and ensure business continuity, in the current pandemic context, according to a statement from the Ministry of Finance.

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