Romanian Econ Min, AVAS To Aid Struggling State-Owned Cos

The measures will amend an emergency ordinance on state aid, a draft found under Parliament debate, AVAS president Mircea Ursache told MEDIAFAX.

 

"Due to requests coming from companies in the AVAS portfolio, AVAS promoted a draft normative act supporting struggling economic agents, a project materialized in the publishing of Government Emergency Ordinance no. 206 in the Official Journal 831/10.12.2008," reads the explanatory note on the law approving Government Emergency Ordinance 206/2008,  document supplied by AVAS for MEDIAFAX.

 

The law states that "the financial support granted to economic operators can come in the form of state aid for restructuring in the form of loans with an interest rate at least compatible with those granted for loans issued to healthy companies and especially with the reference rate adopted by the European Commission, subsidies, working capital infusions or share capital infusions, participations in share capital increases through the transformation of debts into shares."

 

The draft law states that if the aid is not returned within six months since granting or since the receipt of the first installment of the loan, AVAS and the Ministry of Economy can offer the beneficiaries state aid for restructuring or they can request the compilation of liquidation plans, within the boundaries of the law.

 

The sums needed for the loans granted will be allocated from the state budget, through AVAS or the Ministry of Economy, by Government Decision, establishing the funding sources.