Romanian small and medium enterprises (SMEs) have accessed loans worth RON 12.05 bln (EUR 2.5 bln) under the state-backed IMM Invest program.

Just over half of the total value of loans (51%) was for investment, namely RON 6.14 bln (EUR 1.27 bln), Dumitru Nancu, head of the National Guarantee Fund for SME Loans – FNGCIMM, told Agerpres.

Of the 21 banks enrolled in this program, 12 have already asked the fund to increase the ceiling of loans they can extend under the program.

FNGCIMM has analyzed so far over 125,000 loan applications submitted by 67,300 SMEs through the online platform dedicated to the IMM Invest program (a firm can submit more loan applications if the first one is rejected or incomplete).

The banks enrolled in this program have approved over 15,100 loan requests worth RON 12.05 bln. The total value of loans the Government will guarantee through this scheme is RON 20 bln (EUR 4.14 bln). The Government guarantees cover up to 80% of the working capital loans and 90% of the investment loans. The maximum value of working capital loans is RON 5 mln while the maximum investment loan is RON 10 mln.

The Government also covers the interest costs related to the loan for this year. The IMM Invest program aims to help local SMEs withstand the COVID-19 crisis.

Another Government-backed program for helping local SMEs, IMM Leasing, became operational on August 27. The program aims to help SMEs access leasing financing for equipment and machinery. The program allows selected SMEs to get financing of up to RON 5 mln with zero front payment for buying new or second-hand equipment.

(Photo: Octav Ganea/ Inquam Photos)

editor@romania-insider.com