Subsidised interest loans for SMEs

A total of 46 funding applications have been submitted under the Mihail Kogălniceanu programme for SMEs in the first 35 minutes from its official launch.

The announcement was made on Friday by the vice president of the Agency for Implementation of Projects and Programmes for Small and Medium Enterprises, Dumitru Nancu, at the official launch of the programme.

Within the programme, SMEs will be able to resort to credit lines with subsidised interest and also partially granted by the state.

Companies can register online, on the webpage of the Agency.

Companies will be able to access a credit line worth up to 125 thousand lei, with a guaranteed interest of up to 70 percent.

Financing conditions for SMEs:

• Not going through insolvency
• Have minimum two years of operation
• Have no outstanding loans.

The amount granted will represent 50 percent of the turnover for the last 12 months, and if the SME has other credit facilities, the amount is limited to 30 percent of the turnover.

The state guarantee does not exceed, however, 100 000 lei.

The conditions imposed to companies to enrol for this programme are: not to be in insolvency, have a minimum of two operational years and not to be included in the central banking risk with outstanding loans.

The budget allocated to the programme for the period 2011-2013 is of 165 million lei, allowing it to support approximately 28 000 companies.

Translated by: Manuela Stancu
MA Student, MTTLC, Bucharest University