Romanian Govt To Focus On New SME Support Program – PM

Boc said at the opening of a new bypass road for the northwestern city of Cluj-Napoca the state will subsidize part of the interest on loans taken by SMEs and will offer state guarantees of up to 80% for these loans.

"In the upcoming period, the Government will focus on implementing the new program approved in Wednesday's meeting," Boc said, explaining small and medium-sized businesses will be backed so they can create new jobs and keep existing ones.

The Government on Wednesday approved an emergency decree allowing small and medium enterprises to take out loans of up to 125,000 lei (EUR30,000), which would be partially guaranteed and subsidized by the state, in order to help them cope with the problems caused by the economic crisis.

The Government, through the National Fund Guaranteeing Loans for Small and Medium Enterprises (FNGCIMM), will guarantee up to 80% of the loan value, but no more than RON100,000 lei, and will subsidize up to 70% of the interest, but no more than 6.5% per year.

For the 2011-2013 interval, this scheme has a RON165 million budget and the government estimates it will benefit around 12,000 SMEs. The budget for this year is RON24 million for the interest subsidy and RON400 million for guarantees, which is expected to assist around 4,000 small and medium-sized businesses.

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