Romanian government to grant credit lines to companies


In light of the Covid-19 crisis, the Ministry of Public Finance of Romania has announced that it will guarantee up to 80% of the value of the financing granted to SMEs. Details of the credit lines to be provided are outlined below:

  • The maximum value of the credit / line of credit for financing the working capital granted to a beneficiary cannot exceed the average of the expenses related to the working capital of the last two fiscal years, with a maximum ceiling of 5 million lei. For investment loans, the maximum value of the financing is 10 million lei.
  • For micro-enterprises or small enterprises, the state will grant guarantees for loans/ credit lines for financing of working capital, excluding interest, commissions and bank charges related to the state guaranteed credit, at a maximum of 90%. The maximum value of the financing will be 500,000 lei for micro-enterprises and 1 million lei for small businesses.

Interest is subsidized for loans

The Ministry of Public Finance will grant 100% of the interest for the loans to be guaranteed, both for micro and small as well as for medium-sized enterprises.

  • The interest will be subsidized from the moment of granting the loan until March 31, 2021.
  • The granting of the interest subsidy is maintained in the years 2021-2022, starting from April 2021, under the condition that the economic growth estimated by CNSP for these years is below the level registered in 2020 and is established by a Government Decision.

The outstanding fiscal obligations and other budgetary debts will be paid from the loan/credit line for working capital granted under the program.

The guarantee period will be 36 months with the possibility of an additional 36 months extension. For the investment loans, the guarantee period will be 120 months.

The Ministry of Public Finance will cover #the administration commission to cover the costs of granting and monitoring the guarantees granted by the F.N.G.C.I.M.M.

Our team in Bucharest remains at your disposal for any assistance required and can provide advisory in regards to banking issues in Romania during these challenging times.

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Stefania Costea