FNGCIMM informs that in accordance with EU rules on state aid, the European Commission has approved the relaunch of the IMM PLUS state aid scheme, worth approximately 2.5 billion euros (12.5 billion lei).

The European Commission has found that the IMM PLUS state aid scheme, the successor to the IMM INVEST and IMM INVEST PLUS programs, complies with the conditions set out in the Temporary Crisis and Transition Framework and has concluded that the reintroduced state aid scheme remains necessary, appropriate, and proportionate to remedy a serious disturbance in the economy of a member state.

FNGCIMM will implement four out of the six subcomponents of the IMM PLUS program, namely: IMM Romania Plus, Construct Plus, IMM Prod Plus, and Agro Plus.

"The approval of the IMM PLUS state aid scheme represents a significant step in supporting the Romanian economy in the face of the challenges created by the geopolitical crisis in the region. The outcome of the implementation of IMM INVEST and IMM INVEST PLUS, during the period 2020-2023, represents a European record, being reflected in approximately 73,000 guarantees granted by FNGCIMM, worth over 47.2 billion lei, which supported financings of over 55 billion lei.

For IMM PLUS, we have received approval from the European Commission to increase support for SMEs and medium-market capitalization enterprises to a limit of 280,000 euros for companies in the agricultural sector, up to 335,000 euros for those in the fisheries sector, and up to 2.25 million euros for companies active in other sectors," said Dumitru Nancu, General Director of FNGCIMM and Vice President of AECM.

Under the IMM PLUS scheme, the aid will take the form of state guarantees for investment and working capital loans, as well as interest and commission subsidies, with the objective of ensuring the liquidity needed for companies affected by the economic disruption caused by Russia's aggression against Ukraine.

Thus, the governmental IMM PLUS program maintains the main advantages of the program from previous editions, namely:

State-guaranteed loans, up to a maximum of 90% of the financing provided by partner banks in the program;

The maximum value of the loans can be up to 10 million lei, and for the primary agriculture, fisheries, and aquaculture sectors, the maximum cumulative value of state-guaranteed financing cannot exceed 5 million lei;

State guarantees are granted for a maximum duration of 72 months for investment loans and 36 months for working capital;

Interest subsidies for a period of 12 months, except for companies in agriculture, fisheries, and aquaculture;

Subsidized risk and administration fees for the entire duration of the guarantee.

The aid will be granted no later than June 30, 2024.

IMM PLUS continues to remain an essential instrument in the Government's efforts to maintain economic stability, and in line with supporting Romanian companies, FNGCIMM SA IFN has identified other solutions externally to support SME financing with guarantees from European funds.

Recently, our institution has successfully completed the necessary steps to obtain the status of implementing partner for the indirect European guarantee granted by the European Commission under the InvestEU Program.

After successfully completing the mandatory evaluation phase conducted by the independent external auditor KPMG Romania and endorsed by the relevant department within the European Commission, we are on track to access new sources of guaranteeing, which we hope to make available to Romanian companies in the immediate future.

The National Credit Guarantee Fund for SMEs reaffirms its commitment to collaborate with Romanian and European authorities, the banking system, and Romanian entrepreneurs to provide support to vulnerable companies to overcome current difficulties, support companies with development plans, thereby contributing to the consolidation and revitalization of the business environment in Romania. (Photo: Freepik)