The EUR 550 mln public-funded investment grants scheme dedicated to Romanian small and medium-sized enterprises (SMEs), the so-called third scheme of a bigger EUR 1.5 bln COVID-19 grant program for SMEs, is going to be officially canceled, Hotnews.ro reported.

The scheme is blocked since February. It would be re-launched in the future with financing under the European funding program REACT-EU, the Ministry of Economy assured, yet providing no specific calendar.

The investment grants scheme had a total budget of EUR 550 million (individual grants were designed in the range of EUR 40,000-200,000), out of which EUR 478 mln were supposed to come from the European Union's budget.

The Ministry of Investments and European Funds drafted a bill under which the scheme, blocked in February after irregularities were spotted, will be canceled.

The budget will be redirected to the working capital grants schema (the second schema of the EUR 1.5 bln support strategy for COVID-19 hit SMEs).

The investment grants scheme, launched last year by the Liberal Government of prime minister Ludovic Orban, was blocked at the beginning of this year due to irregularities related to the selection process and the scope of the financed investments.

Minister of economy Claudiu Nasui notified the prosecutors, who are running investigations, while the Social Democrat opposition accused the minister of blocking the selection procedures by interfering with the process.

(Photo: Wanida Prapan/ Dreamstime)

andrei@romania-insider.com