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FinMin Citu: 8 bln lei available through large companies support program

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florin citu

The support program for large companies has an allocation of 8 billion lei, with a multiplier effect of almost 28 billion lei in the economy, and it will be operational in three weeks or maximum one month, Finance Minister Florin Citu announced on Thursday evening after the government meeting.

"We approved the Memorandum for the large companies support program. As you know, we announced from the very beginning that Romanian large companies will benefit from similar conditions with the SMEs. Three important measures have been approved. A guarantee in the name and on behalf of the state for the companies affected by the Covid pandemic, which covers a maximum of 90 percent of the guarantee required for new loans and loans granted by commercial banks for investments and/or supporting the day-to-day operation of the beneficiary companies. The second measure consists in financing with a state aid component in the name and on behalf of the state for the company affected by the Covid pandemic, allowing it to make investments and/or support current activities - it is obvious here that we have learned from the experience with IMM Invest and we want to combine investment loans with those in support of the current activity, working capital. The third measure consists in the grant of instruments with a 'de minimis' component, specifically in compensation for the interest on ongoing loans, subsidizing interest on new loans and guarantee ceilings with a 'de minimis' component for working capital loans granted by commercial banks. Here too we have an interest subsidy just like in the 'de minimis' system," Citu said.

The beneficiaries of these instruments are private law legal entities from the SME category with a turnover of over 20 million lei in 2019, or large companies with more than 250 employees, said the minister.

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