The European Commission approved on Friday an aid scheme for Romania with a value of 4 billion euros, which is intended to support businesses in all sectors in the context of the invasion of Ukraine by Russia.
The scheme was approved under the temporary State aid crisis framework adopted by the European Commission on 23 March 2022 and amended on 20 July 2022 under Article 107(3)(b) of the Treaty on the Functioning of the European Union (” TFEU”), in which it is recognized that the EU economy is facing serious disruptions.
“Russia’s unjustified war of aggression against Ukraine continues to have negative effects on the EU and Romania’s economy. The 4 billion euro aid scheme approved today will allow Romania to mitigate the economic impact of the current geopolitical crisis on businesses in all sectors. We continue to affirm our support for Ukraine and its people. At the same time, we continue to work closely with Member States to ensure that national support measures can be implemented in a timely, coordinated and effective manner, while protecting the level playing field in the single market,” states Margrethe Vestager, vice-president of the European Commission in charge of competition policy.
Romania notified the Commission, under the temporary crisis framework, of a €4 billion scheme to support businesses of all sizes and from all sectors in the context of Russia’s invasion of Ukraine.
The aid will take the form of: guarantees for loans, with a maximum budget of 3.6 billion euros; direct grants, with a maximum budget of 390 million euros, to compensate part of the costs owed under the guaranteed loans.
The scheme aims to ensure that affected businesses continue to have sufficient liquidity, allowing banks to continue lending to the real economy, the European Commission’s statement also states. Eligible beneficiaries will be entitled to receive new loans that are covered by a state guarantee of up to 90% of the loan amount, with maximum maturities of up to six years. The European Commission found that Romania’s aid scheme meets the conditions set out in the temporary crisis framework. In particular, with regard to loan guarantees, the aid will cover loan guarantees of a certain maturity and limited value