Romania's EU funds minister announces EUR 1 bln stimulus package for SMEs

Romania's Government plans to launch a EUR 1 bln stimulus package for small and medium-sized enterprises (SMEs).

The program will be financed from the European Union budget, EU funds minister Marcel Bolos announced on Thursday, April 30. He added that this budget "has doubled" during the negotiations, local Agerpres reported.

According to the minister, the package will include working capital grants (10% of pre-crisis turnover), consumption vouchers (such as holiday vouchers), 50% of the technical unemployment costs, and investment grants (up to EUR 0.8 million per recipient).

Based on past statements of Government officials, this seems to be the second package of anti-crisis measures, aimed at restarting economic activity - after a first package, worth EUR 810 million, was aimed at mitigating the effects of the crisis (by financing 75% of the technical unemployment cost, purchasing medical equipment and paying bonuses to medical staff). Both packages will be "financed from the EU budget" by the re-allocation of funds initially earmarked for other purposes, under the same 2020-2024 financial framework national envelope.

Separately from the two packages, Romania obtained EU approval for guaranteeing loans extended to SMEs, of up to RON 15 billion (EUR 3.2 bln). The Government will subsidize the interest and fees from the state budget and guarantee up to 90% of the loan value.

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