The European Commission Announces the Approval of a New Aid Scheme for Romania

By
Adrian Gabor
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The European Commission Announces the Approval of a New Aid Scheme for Romania

The European Commission has officially announced the approval of an aid scheme, worth 500 million euros, designed by the Romanian Government to support companies from all economic sectors of our country, which were affected by the war in Ukraine.

"The European Commission has approved a Romanian scheme of approximately 500 million euros (2.500 million lei) to support companies in all sectors in the context of Russia's war against Ukraine.

The scheme was approved under the Temporary State Aid Crisis Framework adopted by the Commission on 23 March 2022 and amended on 20 July 2022 and on 28 October 2022 pursuant to Article 107(3)(b) of the Treaty on the Functioning of the European Union European Union ("TFEU"), recognizing that the EU economy is facing serious disruption.

Romania has notified the Commission, under the Temporary Crisis Framework, of a scheme of approximately 500 million euros (2.500 million lei) to support companies in all sectors in the context of Russia's war against Ukraine.

Under the scheme, which will be administered by the state-owned development bank, Banca de export import a Romania EximBank SA ("EximBank"), which is 95% owned, the aid will take the form of (i) loan guarantees; and (ii) subsidized loans.

Given the high degree of economic uncertainty caused by the current geopolitical situation, the scheme aims to ensure that sufficient liquidity remains available to companies in need.

The measures will be open to small and medium-sized enterprises ("SMEs") with an annual turnover of more than EUR 4 million (RON 20 million) and large companies in sectors, with some exceptions, such as gambling activities and betting, insurance, real estate. activities, distribution and trade of energy and fuels. Financial and credit institutions will also be excluded.

In the first measure, with an estimated budget of approximately 300 million euros (1.500 million lei), the guarantees will cover up to 90% of the loan or leasing principal. Losses will be borne proportionately by credit institutions and the state.

The budget allocated for the second measure, under which the aid will take the form of subsidized loans, is approximately 200 million euros (1.000 million lei)."