EC approves €3.3 billion Romanian scheme to support SMEs in COVID outbreak
Temporary Framework will be in place until the end of December 2020.
14 Aprilie 2020, 15:53
European Commission has approved a RON 16 billion (approximately €3.3 billion) Romanian scheme to support small and medium-sized enterprises (SMEs) in the context of the coronavirus outbreak.
RRA Reporter Ianna Ioniță: This €3.3 billion Romanian scheme will enable Romania to help SMEs cover investment and working capital needs in these difficult times, through provision of direct grants and public guarantees on loans.
The Romanian support scheme
Romania notified to the Commission under the Temporary Frameworka RON 16 billion (approximately €3.3 billion) scheme to support SMEs affected by the coronavirus outbreak.
Under the scheme, support will be granted in the form of:
• Direct grants; and
• State guarantees for investment and working capital loans.
The support under the scheme will be accessible to SMEs facing difficulties as a result of the economic impact of the coronavirus outbreak. The aim of the scheme is to help businesses cover their immediate working capital or investment needs, thus ensuring the continuation of their activities.
Commission found that the Romanian measures are in line with the conditions set out in the Temporary Framework. In particular:
- With respect to direct grants, the support per company will not exceed €800 000 per company as foreseen by the Temporary Framework;
- With respect to State guarantees, (i) the underlying loan amount per company covered by a guarantee is limited as set out in the Temporary Framework, (ii) the guarantees are limited to a maximum of six years, and (iii) the guarantee fee premiums do not exceed the levels foreseen by the Temporary Framework.
Commission concluded that the Romanian measures are necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework.
On this basis, the Commission approved the measures under EU State aid rules.
Temporary Framework enables Member States to combine all support measures with each other, except for loans and guarantees for the same loan and exceeding the thresholds foreseen by the Temporary Framework. It also enables Member States to combine all support measures granted under the Temporary Framework with existing possibilities to grant de minimis to a company of up to €25,000 over three fiscal years for companies active in the primary agricultural sector, €30,000 over three fiscal years for companies active in the fishery and aquaculture sector and €200,000 over three fiscal years for companies active in all other sectors. At the same time, Member States have to commit to avoid undue cumulation of support measures for the same companies to limit support to meet their actual needs.
Temporary Framework will be in place until the end of December 2020. With a view to ensuring legal certainty, the Commission will assess before that date if it needs to be extended.
Source:European Commission Newsroom
