Investment fund CEO: Romania's IMM Invest has jammed banks, it’s not working

The Government-backed IMM Invest program is not working properly and has paralyzed the banking system, said Rudolf Vizental, CEO and Co-founder of distressed assets investment fund ROCA, quoted by Profit.ro.

Local credit institutions work 90% of the time for projects under this program that does not work and have run out of resources to address other projects, causing real problems for companies, he warned.

Vizental argued for alternative financing resources, such as the stock market, and said that ROCA considers this option for each it takes over. He says that the investment activity has not stopped, and ROCA's strategy is to invest in the medium and long term.

"We are waiting for this turbulent period to pass and to see how the market will recover. Our general focus is to consolidate, grow and take financing in the capital market seriously - it is a sign of maturity that we look at in the perspective of every investment we make," Vizental added.

The Government launched the IMM Invest program at the end of April to help local small and medium enterprises (SMEs) get loans for working capital and investments at lower costs amid the COVID-19 crisis.

Over 50,000 firms have applied for loans within this program, but only a few have received the money so far, according to media reports.

(Photo: Octav Ganea/ Inquam Photos)