ROMANIA

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The Government has published the application norms for two state aid measuresin the form of loans with subsidized interest and guarantees to loans, part of the COVID-19 State aid scheme.

Below, plase find the main coordinates of these two state aid measures.

EximBank Loans within the COVID-19 State Aid Scheme (NI-FIN-08/I/0) – Loans with subsidized interest

Eximbank grants state aid under the form of loans with subsidized interest in RON, for carrying out investments and for sustaining current activity.

Objective: unlocking the access to financing for companies confronted with a cash flow deficit generated by the COVID-19 pandemic, with the aim of their continued activity.

Eligibility conditions:

• The applicant must be a large enterprise or an SME with a turnover for 2019 of over 20 million RON
• The applicant must not be an enterprise in distress
• No decisions of recovering a state aid were issued against the applicant
• The applicant does is not listed in the Payment Incident Bureau  with major incidents regarding checks or promisory notes
• The applicant is not in an ongoing procedure of foreclosure, operational closure, liquidation or special administration, insolvency, bankruptcy, etc.
• The applicant does not have outstanding debts to the general consolidated state budget
• All existing credit installment payments are paid at maturity or no more than 15 days late. The only allowed exception is for those outstanding sums incurred after March 16th as a direct consequence of the COVID-19 pandemic.
• The applicant is not in litigation with EximBank, with the Ministry of Public Finances or with ANAF

Types of loans granted:

• Loans for investments
• Loans for working capital

Maximum value of a loan:

• The double of the applicant’s yearly expenditure with wages in 2019 (including social contributions and outsourced personnel) or, in the case of companies established after January 1st 2019, the double of the yearly estimated wage costs for the first two years of activity,

Or

• 25% of the applicant’s total turnover for 2019

Or

• The estimated necessary cash flow for a period of 18 months 9in the case of SMEs) or 12 months in the case of large enterprises.

The applicant can access multiple COVID-related state aid measures (for loans or guarantees), provided that the total value of loans granted/guaranteed does not surpass the maximum value of the loans, as stated above.

Eligible expenses:

1. In the case of investment loans:

1. Investment expenditures: purchase of equipment and construction works associated to these; purchase of lands or buildings necessary in carrying out the investment project; intangible assets (licenses, patents, software, documentations); consulting fees and expenditures for drafting documentations; other expenses related to the implementation of the investment project, including VAT

1. In the case of working capital loans: expenditures appertaining to commercial contracts/orders (purchase of raw materials for supply, production, sale, etc.); general expenditures related to current activities (including outstanding debts to the state budget)

Maximum maturity of the loan (including grace periods, where applicable):

• 6 years for investment loans
• 4 years for working capital loans

The loan will be covered to a degree of 100% with collateral guarantees (real and personal).

Applicant’s own contribution to the investment: a minimum of 10%, to be fully utilized before the first draw from the loan

Budget of the scheme: 2 billion RON (approx. 400 mil. EUR), for an estimated number of 100 beneficiaries.

Deadline for submission of the financing file: November 30th, 2020

EximBank guarantees within the COVID-19 State Aid Scheme (NI-GAR-14-I/0)

Eximbank grants state aid in the form of guarantees, which cover a maximum of 90% of loans granted by credit institutions for carrying out investments and for sustaining current activity.

Objective: unlocking the access to financing for companies confronted with a cash flow deficit generated by the COVID-19 pandemic, with the aim of their continued activity.

Eligibility conditions:

• The applicant must be a large enterprise or an SME with a turnover for 2019 of over 20 million RON
• The applicant must not be an enterprise in distress
• No decisions of recovering a state aid were issued against the applicant
• The applicant does is not listed in the Payment Incident Bureau  with major incidents regarding checks or promisory notes
• The applicant is not in an ongoing procedure of foreclosure, operational closure, liquidation or special administration, insolvency, bankruptcy, etc.
• The applicant does not have outstanding debts to the general consolidated state budget
• All existing credit installment payments are paid at maturity or no more than 15 days late. The only allowed exception is for those outstanding sums incurred after March 16th as a direct consequence of the COVID-19 pandemic.
• The applicant is not in litigation with EximBank, with the Ministry of Public Finances or with ANAF

Types of guarantees granted:

• Guarantees for new loans
• Guarantees for ongoing loans, for supplementing existing collateral guarantees, with the aim of maintaining/expanding financings to a level which enables applicants to continue their activity

Maximum value of the guarantee:

1. Maximum of 90% of the loan value (principal), in the case of new loans
2. Maximum of 50% of the loan value (principal), in the case of ongoing loans

The value of the guarantee will be reduced pro-rata as the applicant reimburses the loan

Maximum maturity of the guarantee is equal to the loan maturity and cannot exceed 6 years.

Characteristics of the guaranteed loan:

Types of loans granted:

–          Loans for investments

–          Loans for working capital

Maximum value of a loan:

–          The double of the applicant’s yearly expenditure with wages in 2019 (including social contributions and outsourced personnel) or, in the case of companies established after January 1st 2019, the double of the yearly estimated wage costs for the first two years of activity,

Or

–          25% of the applicant’s total turnover for 2019

Or

–          The estimated necessary cash flow for a period of 18 months 9in the case of SMEs) or 12 months in the case of large enterprises.

The applicant can access multiple COVID-related state aid measures (for loans or guarantees), provided that the total value of loans granted/guaranteed does not surpass the maximum value of the loans, as stated above.

Eligible expenses:

3. In the case of investment loans:
4. b)Investment expenditures: purchase of equipment and construction works associated to these; purchase of lands or buildings necessary in carrying out the investment project; intangible assets (licenses, patents, software, documentations); consulting fees and expenditures for drafting documentations; other expenses related to the implementation of the investment project, including VAT
5. In the case of working capital loans: expenditures appertaining to commercial contracts/orders (purchase of raw materials for supply, production, sale, etc.); general expenditures related to current activities (including outstanding debts to the state budget)

Maximum maturity of the loan (including grace periods, where applicable):

–          6 years for investment loans

–          4 years for working capital loans

The loan will be covered to a degree of 100% with collateral guarantees, as follows:

• • • For new loans: guarantees created by the beneficiary: 10%, EximBank guarantee of maximum 90%
    • For existing loans: guarantees created by the beneficiary: 50%, EximBank guarantee of maximum 50%

Budget of the scheme: 2 billion RON (approx. 400 mil. EUR), for an estimated number of 325 beneficiaries.

Deadline for submission of the financing file: November 30th, 2020

In order to get our Turnkey solution, please call 0758.839.883

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