Ionel Danca, head of the Chancellery of the Prime Minister, said on Wednesday that at a government meeting the same day the final form of the SME Leasing programme was adopted.
“The provisions regarding the SME Leasing programme were discussed and adopted, as a result of some observations. The changes occurred in this programme were approved and, under an emergency ordinance adopted at today’s government meeting the final form of SME Leasing was approved to be implemented after the adoption of enforcement rules. As a result, the National Guarantee and Lending Fund for Small and Medium-sized Enterprises will propose at a subsequent government meeting the rules for implementing this programme and it will thus become operational,” Danca told a press conference at the Government House.
He said that a draft government decision was also adopted regarding the powers of the inter-ministerial finance, guarantee and insurance board of EXIMBANK in the development of a loan programme for large companies.
On July 23, Danca said that SME Leasing is a programme to facilitate access to finance of SMEs for the purchase of equipment and machinery, a non-bank financing that round up the SME Invest programme.
“Under the new programme, guarantees of up to 80% for loans for the purchase of IT equipment and 60% for loans for the purchase of other equipment and machinery are being considered,” said Danca.
Gov’t approves enforcement rules for the “First House” programme
The government has approved enforcement rules for the “First House” programme, Ionel Danca, head of the Chancellery of the Prime Minister said on Wednesday.
“Tonight, enforcement rules of the ‘First House’ programme were approved. In this case we are talking about two categories of beneficiaries: those who, until now, were in the category of beneficiaries according to the conditions of the previous ‘First House’ programme, namely qualifying for loans of up to 70,000 euros, on state guarantees of 50% and 5% advance for new or old homes. Adding up to them is a new category of beneficiaries, those who will purchase real estate of a value between 70,000 euros and 140,000 euros. With the publication of the rules in the Official Journal the programme (…) becomes available for those who want to purchase real estate on loans with state guarantees. We are talking about approximately 1.6 billion lei available until the end of 2020 for this programme,” Danca said on Wednesday, at the end of a government meeting.
Responsibilities of EXIMBANK interministerial committee for loans to large companies approved by the Gov’t
The government approved a draft decision on the responsibilities of the EXIMBANK Interministerial Committee on Finance, Guarantees and Insurance, which will carry out a lending program for large companies, said the head of the Chancellery of the Prime Minister, Ionel Danca.
“The government has adopted a draft decision on the responsibilities of the EXIMBANK Interministerial Committee of Finance, Guarantees and Insurance, which will develop a credit programme for large companies. The status of EXIMBANK had already been modified previously by an emergency ordinance to allow the administration of a state-guarantee scheme and state-aid scheme for lending to large companies in a similar way to the SME Invest programme. After the adoption of the respective emergency ordinance, the government had to modify the responsibilities of the Interministerial Committee to operate in the state-guarantee and state-aid schemes. Basically, after the approval of this decision by the government, the lending programme dedicated to large companies to be carried out through EXIMBANK will have to be regulated in terms of implementation norms in order to become operational,” Ionel Danca said on Wednesday evening, at the end of the government meeting.
Airports in Iasi, Bacau, Cluj, Craiova, Sibiu to benefit from state-aid scheme
Airports in Iasi, Bacau, Cluj, Craiova and Sibiu will benefit from a state aid scheme worth 22 million lei to compensate for the losses caused by the COVID-19 pandemic, based on a memorandum approved by the Government, said the head of the Chancellery of the Prime Minister, Ionel Danca.
“Through a memorandum initiated by the Ministry of Public Works, Development and Administration, a state aid scheme has been adopted at this Government meeting for regional airports with traffic between 200,000 and 3 million passengers per year, to compensate them for the losses caused by the COVID-19 pandemic. We are talking about the airports in Iasi, Bacau, Cluj, Craiova and Sibiu, with the total amount to be approximately 22 million lei. In the case of airports with traffic below 200,000 passengers per year, they have already benefited from a similar support scheme, and other airports that fall into the traffic category between 200,000 and 3 million passengers per year have accessed such schemes individually,” Ionel Danca also stated on Wednesday evening, at the end of the Government meeting.
He specified that this memorandum provides the legal framework for the approval of an emergency ordinance for granting state aid to those airports that were not included in the previous state aid schemes or do not benefit from a similar facility at present.
State-aid schemes for agriculture considered by the Executive
The government on Wednesday considered in first reading several draft pieces of legislation regarding the establishment of state-aid schemes for agriculture, including cattle breeders, pig farmers, poultry farmers, beekeepers and drought-affected farmers according to Ionel Danca, head of the Chancellery of the Prime Minister.
“In the field of agriculture, as announced in the opening of the government meeting, the Ministry of Agriculture presented several draft emergency ordinances for the establishment of state-aid schemes for several areas in the area of farmers, the area of animals that have suffered losses as a result of the COVID-19 pandemic. Discussed in first reading and – after getting all the opinions – several state-aid schemes will be approved at a subsequent government meeting, as follows: a state-aid scheme for cattle breeders, we are talking about a scheme under which applicants can get a maximum aid of 100,000 euros for losses sustained as a result of the COVID 19 pandemic. The budget for this scheme is 35.7 million lei for about 44,000 applicants,” Danca said Wednesday at the end of the government meeting.
He added that another aid scheme is aimed at raising pigs.
“We have a similar scheme on a budget of 119 million lei, with the maximum value of the aid being 100,000 euros per beneficiary,” Danca said.
He added that for poultry farmers, the state-aid scheme discussed has a budget of “109 million lei”, and for those in the beekeeping sector the scheme has a budget of “50 million lei”, for ” approximately 24,000 applicants.”
“More details on how to apply for this support mechanism will be released after their final adoption,” Danca said.
He said the Ministry of Agriculture presented in the first reading a draft emergency ordinance for the establishment of a state-aid scheme for agricultural producers affected by this year’s drought.
“We are talking about a number of beneficiaries of approximately 34,800, with the total value of the scheme being 850 million lei, and the maximum value of support is 925 lei per hectare,” Danca explained.