Romania's Government extended guarantees for bank loans worth RON 15 billion (EUR 3 bln) in 2020 under the IMM Invest scheme dedicated to the small and medium-sized enterprises, according to the head of the body that manages the bank loan guarantees - FNGCIMM, Dumitru Nancu.

Local banks already extended loans worth RON 12 bln (EUR 2.4 bln) to the SMEs with state guarantees.

Last year, FNGCIMM generated 30% of the total volume of guarantees extended in 18 years of activity.

Overall, FNGCIMM extended guarantees worth RON 20 bln (EUR 4.1 bln) in 2020 (including the RON 15 bln under IMM Invest).

The total amount of new loans extended by banks to companies in 2020 was around EUR 10 bln, meaning that the IMM Invest accounted for a quarter of the total lending in the year. The Government also covered the interest and guarantee fee for the IMM Invest loans in 2020.

In 2021, the IMM Invest program will offer guarantees of up to RON 14 bln (EUR 2.87 bln), Dumitru Nancu told Ziarul Financiar.

The fund will also run the IMM Leasing program (state guarantees for leasing financing) with a total ceiling of RON 4 bln, and Agro IMM Invest, a loan guarantee program for SMEs in agriculture, with total guarantees of up to RON 1 bln.

andrei@romania-insider.com

(Photo source: Inquam Photos/Octav Ganea)