Romania's Ministry of Economy will directly finance small and medium-sized enterprises with EUR 1 billion, state secretary Liviu Rogojinaru announced in a videoconference.

The money comes from European funds not yet spent by Romania under the financial year 2014-2020, so the funds must be distributed and used by the end of 2020, Ziarul Financiar reported.

The sums will go as grants to selected firms, supposedly those most hurt by the crisis. Rogojinaru spoke about a decision taken three days ago (on May 22), by the Government.

Based on this decision, the Ministry of European Funds will transfer EUR 2 billion to the Ministry of Economy (EUR 1 bln) and the Ministry of Public Works (another EUR 1 bln).

Some EUR 100 mln will be distributed "as vouchers" to firms with no employees (or firms where the owner is the sole employee), according to Rogojinaru.

"Of the money coming to the Ministry of Economy, EUR 350 mln is going to HORECA, transport, and companies that have been severely affected by this situation. We are talking about a grant of around EUR 20,000 of non-reimbursable money for each company," Rogojinaru declared during the video conference.

He added that the authorities want companies to use this money to cover debts or become bankable so that they can pay their obligations to the state.

"There is around EUR 100 mln of money that will be given as [state] aid in the form of vouchers to companies without employees, where the employer is the only employee. Thirdly, EUR 550 mln are earmarked for a program for those [companies] that want to speed up production - either medium or small firms that have the necessary capacity. Under this program, we can offer up to EUR 800,000 non-refundable money, and the money can go to companies in industry, trade, or any other sector. We try to make the selection as correct as possible, and the use of the money should be monitored," added the secretary of state. 

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editor@romania-insider.com