The European Commission (EC) approved the state aid scheme designed by Romania's Government for guaranteeing bank loans extended to large companies.

The Executive is ready to pass a decision to make the program functional, prime minister Ludovic Orban announced, according to Agerpres. In fact, the Government will adopt all the decisions related to the investments and economic recovery within 30 days, Orban assured.

Under the scheme dedicated to large companies, the Government will guarantee loans of up to RON 8 billion (EUR 1.7 bln). The state guarantees will cover up to 80% of the loans.

Under a similar program for SMEs, IMM Invest, the Government also covers the interest costs (for this year), and the same provision might apply for the large companies as well.

The Government is also close to starting the disbursement of the EUR 1 bln grants for SMEs, microenterprises, and firms with no employees, PM Orban announced.

"This is the EUR 1 billion that we have mobilized as a result of the Commission's decision to increase the flexibility between the various programs for the 2014-2020 financial framework. EUR 550 mln will be for investment grants, EUR 350 mln for working capital grants, for restarting companies in the most affected areas such as HoReCa, entertainment, and passenger transport. We will also disburse EUR 100 mln in grants to small businesses that do not have employees," Orban said.

editor@romania-insider.com

(Photo source: Gov.ro)