Romania's Government discussed on Thursday, July 16, in a first reading, the emergency ordinance for the EUR 1 billion European funds to be redirected to microenterprises and SMEs as grants for working capital and investment, Profit.ro reported.

The measures, to be adopted in this week's Government meeting, are part of the Economic Recovery Plan, prepared by the Government, which previously announced about EUR 2.5 bln support for SMEs.

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

The executive has agreed on three forms of support or instruments from non-reimbursable external funds.

Firstly, microenterprises without employees will get EUR 2,000 micro-grants for working capital. Secondly, grants will be disbursed to secure the necessary working capital for SMEs. The working capital grants will have a value between EUR 5,000 and EUR 150,00) and will depend on the size of the recipient companies, the budget allocated being worth EUR 350 mln.

The ordinance also mentions a list of eligible sectors for this scheme. And finally, grants will be disbursed for investments carried out by SMEs.

The investment grants will be granted per project and beneficiary and have a value between EUR 50,000 and EUR 200,000, depending on the financing needs of the investment projects submitted for financing.

The total funds allocated for investment grants amount to EUR 550 mln.

(Photo: Pixabay)

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