“A maximum of 10% of the eligible value of the project is pre-financed, and is granted in at least two installments, except for major projects, where the pre-financing can amount to a maximum of 20%,” reads an order issued by the finance minister and published on Tuesday in the Official Journal (Official Journal, Part I, n. 527/July 26 2011).
The decision came as a result of the fact that many of the companies that take pre-financing no longer send the bills to the management authorities to reimburse them, so the authorities in turn cannot send them on to Brussels in view of repayment.
“It is quite difficult to cover early-stages activities with 10% because it is then that the highest expenses are made: purchases, space rental, buying furniture, hiring people. The 24% VAT is added to this, with the money being recouped only when the project is finalized,” said Cristina Preda, managing director of training and consulting firm Brain Wave Communication, which is currently implementing a project financed with EU funds for human resources, worth nearly EUR4.8 million.