The program has become operational Friday morning.
Through the “Mihail Kogalniceanu” program, the state guarantees 80% of the value of loans taken by small and medium enterprises and subsidizes up to 50% of the interest.
The state’s guarantee is capped at 100,000 lei (EUR23,500) and the interest subsidy is capped at RON125,000 per year per beneficiary. The amount provided is equal to 50% of the firm’s turnover in the last 12 months, or no more than 30% if the firm benefits from other lending incentives.
Ten banks have registered for the program: BRD Groupe Societe Generale, Banca Transilvania, Bancpost, CEC Bank, Banca Comerciala Carpatica, Alpha Bank, Garanti Bank, OTP Bank Romania, Pro Credit Bank and Unicredit Tiriac Bank.
The program will guarantee loans amounting to about EUR3 billion in the 2011-2012 interval, considering that the Government will provide guarantees amounting to EUR700 million.
“The EUR600-700 million the state will provide within the program will support loans of EUR2.5-3 billion taken out by firms for their working capital,” Aurel Saramet, president of the National Fund for SME Loan Guarantees, said Friday.
The budget allotted to the program this year to subsidize the interest stands at 24 million lei (EUR5.66 million), enough for 4,000 firms. It will rises to RON70 million in 2012 and to RON71 million in 2013.
The number of beneficiaries of guaranteed loans within the program is estimated at 28,000 in the 2011-2013 interval. (EUR1=RON4.2457)