FinMin says state could invest in private companies

Minister of Public Finance Florin Citu says one of the measures he has been working on together with the international financial institutions refers to direct investments to be made by the state in private companies.

"I am looking at the measures other countries use, like for instance Switzerland, which overcame the crisis in 2008. What problems do the companies face during the crisis? Many of them become unbankable, meaning that no bank is willing to grant them a loan anymore. So how do we help such companies? We can grant them loans, with guarantees, subsidies or behave like their partner for a while, in the sense of buying, investing, granting them loans, which could turn into shares in the future. This is also a measure that was used in the US, helping companies overcome this period. The state brings the state's creditworthiness to help the company, the state's guarantee, and not just through an instrument, but through becoming a shareholder. This is another measure I have been considering. In the US, when the state grants loans to the start-ups it bets on the same principle, that of a partner, and if there is profit, we will both gain from it, if not, we are both going to lose," the Minister of Finance told Digi 24 private broadcaster on Sunday evening.

The instrument by which the state can do the above is not yet available, because the state is now working with international institutions that did this before, including in Romania, to get as higher ceilings as possible.

This is part of the measures to prepare for the transition to follow after the furlough measure ceases. According to the Minister, the state has been working on a similar programme with SME Invest, but for the large companies.

He mentioned that after the health crisis passes, the money will be injected in those sectors that are the most profitable for the economy.

In his opinion, economies won't look the same after the crisis, and not just in Romania, but all over the world, but Romania still has a chance to be among the first countries to exit this crisis.