The Ministry of Finance through the Department for State Aid is coordinating three EU funding lines that aim to encourage investment in Romania. The HG 753 line finances investments of at least EUR 100 million, which would generate 500 new jobs, while the HG 1680/2008 is for investments of minimum EUR 5 million, with 50 percent not refundable. Finally, the HG 797/2012 line is for investments with minimum 200 employees, with 50 percent of the value of the salaries paid for two years not refundable.
The three funding lines are only available this year. The evaluation of the projects takes around four to six months, and the last month when the Ministry will give agreements for financing projects will be December 2013. The projects must be implemented by 2018 at the latest, while reimbursements will be made in maximum two to three months.
The HG 1680/2008 line is appropriate for building hotels, hospitals, warehouses or production units, or simply the acquisition of equipment for any activity, with agriculture and some other sectors, such as steel, excluded.
If the value of the project is between EUR 5-10 million, the company must create 50 new work places; while for projects between EUR 10-20 million, 100 positions must be created. The maximum not refundable is EUR 28 million. New companies and existing companies can apply, under certain conditions relating to losses.
The companies must present a technical/economic study and an investment plan. They must also prove that they have a market and contracts to sustain the turnover that they predict for the next 5 years. The companies must demonstrate how they will finance the 50-60 percent of the total required for co-financing projects.
by Roxana Mircea, Guest Writer
REI FINANCE ADVISORS is a specialized company in consultancy for state aids –funds, working since 2008 with the Ministry of Finance and with more than 10 big projects on State Aid-HG 1680/2008 in its portfolio.