Romania’s Govt. simplifies lending procedures under state-guaranteed program
Romania's Government, on May 27, decided to simplify the procedures of the IMM Invest program.
With this measure, the Government aims to accelerate the processing of the loan requests filed by the small and medium enterprises (SMEs) that should benefit from this program.
The SMEs will no longer have to prove that they were impacted by the economic effect of the coronavirus epidemic, Ziarul Financiar reported.
The mortgage on the debtor's movable and immovable property will also be eliminated (as the state guarantees 90% of the value of loans).
"There are two barriers that we eliminate today, following Friday's discussions with the banking system. One proposal was to waive the requirement to establish a legal mortgage on all movable and immovable property belonging to the debtor. It was a point that I debated with the banking system and led me to this conclusion. The second barrier is related to an element of ambiguity as to how to prove whether or not the company has been affected," finance minister Florin Citu explained.
He said that the Government would further amend the procedures if needed.