Prima pagină » English » Most Of Romanian SMEs, Affected By Fin Crisis – SME Council Head

Most Of Romanian SMEs, Affected By Fin Crisis – SME Council Head

More than 90% of Romanian small and medium sized enterprises SMEs are affected by the financial crisis, mostly because of lower demand and harsher lending conditions, the president of the National Council of Small and Medium Sized Private Enterprises CNIPMMR Ovidiu Nicolescu said Tuesday.
Most Of Romanian SMEs, Affected By Fin Crisis - SME Council Head
17 mart. 2009, 13:41, English

Other effects of the financial crisis upon SMEs are the reduction of exports, lower investments and finally, yet importantly, the psychological effect of the market difficulties, according to CNIPMMR.

“Lending unfreezing is essential as lack of financing also destroys viable businesses. Romania is more affected from this point of view as 95% of the banks depend on foreign capital and parent banks keep their money,” Nicolescu also said.

However, Nicolaescu said SMEs face a financial deadlock partly because of the state through its debts towards the private sector and on the other hand by other companies that become indebted because of their financing problems.

According to the CNIPMMR head, the government has to adopt in the next two or three weeks the needed legislation for applying the anti-crisis measures for SME support, announced by the Prime Minister, so that those measures come into force as soon as possible.

Nicolaescu named especially the tax exemption for reinvested profit that should be enforced as of the second quarter.

The government decided last week to constitute a counter-guarantee fund with a share capital of EUR100 million.

Other measures announced by the government to support the business environment are the preliminary financing hike at 20% for projects, rapid and efficient access to reimbursable funds and the correlation between the governmental fiscal policies and the central bank’s monetary policy to unblock Romanian lending.