The European Commission (EC) gave the green light for a RON 4 bln (EUR 0.8 bln) state aid program dedicated by the Romanian Government to companies with a turnover above RON 20 mln (EUR 4 mln), impacted by the coronavirus pandemic, Adevarul reported.
The Government will extend guarantees for 80% of the bank loans contracted by companies that will apply for this program and will subsidize the interest for a limited period.
According to previous statements of Government officials, the state will offer guarantees for loans of RON 8 bln (EUR 1.6 bln), a lower amount than the volume envisaged for a similar program dedicated to SMEs (IMM Invest) - EUR 3 bln.
The new program will be managed by the development branch of Romania's Import-Export Bank - EximBank, which will act on behalf of the Romanian state "and independent of Eximbank's commercial activities."
The Commission has found that the program complies with the conditions set out in the Temporary Framework. Specifically, for both measures: (i) the maturity of the loans is limited to six years, (ii) the value of the loans corresponds to the level set out in the Temporary Framework in terms of the liquidity needs of the beneficiaries, (iii) the loans relate to the needs of working capital and investment, and (iv) the Romanian authorities have set up guarantees to ensure that the aid is effectively transferred to the final beneficiaries.
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