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President Iohannis to meet business environment representatives on topic of economic relaunch measures

President Klaus Iohannis will have, on Tuesday, at the Cotroceni presidential Palace, a meeting with representatives of the business environment on the topic of measures for economic relaunch.

According to the Presidential Administration, the meeting will take place at 14:00 hrs.

Prime Minister Ludovic Orban presented, on Monday evening, several measures in the economic domain.

 

Gov’t prepares working capital & investment guarantee mechanism for large companies

 

The government will adopt a regulatory act that will set in place a working capital and investment guarantee mechanism for medium-sized and large companies that cannot access the SME Invest facility, Premier Ludovic Orban said on Monday.

“I believe that we can take advantage of an international economic situation where Romania can be an attractive target for major relocations of production capacities from certain countries, and we are ready to offer the best possible conditions to be able to attract these companies that plan to move. We already have favorable signals in this regard and I think this can be an important growth driver. We also have some measures in preparation. Taking after the SME Invest model, we will adopt a regulatory act that will create a working capital and investment guarantee mechanism for large companies that cannot access the SME Invest [facility], for medium-sized and large companies. This tool is very important, we have many big companies that have kept their business, we have a lot of big companies which resumed activity despite having suspended it for a short time, like Dacia, Ford, or Pirelli; they are now resuming their activity after a short period of interruption,” Ludovic Orban told a press conference at the Victoria Palace of Government.

The Prime Minister announced on the same occasion the coming into operation within short of a state aid scheme for which the government has received the European Commission’s support, and which envisages particularly large electricity consumers, by reducing the share of green certificates by as much as 20 percent.

He said that another instrument the government will use to support investments is the “lever of state aid for ‘greenfield’ investments that are either made by new entrants on the Romanian market, or are projects for the development of new industrial capacities by companies that are already active on the Romanian market.”

The Executive is also working on a state aid scheme “for guaranteeing and getting involved in insuring commercial credit”, a mechanism that already works in Germany, Italy, and is being implemented in Poland.

“In Romania we have a big problem in terms of lending, because in absence of a highly developed stock exchange, only few companies can raise loans, financing for their projects on the stock exchange,” Orban said.

The Prime Minister added that the government is making efforts to mobilize as much as possible European funding to support small and medium enterprises, especially for investment projects.

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