Support measures for companies
The Ministry of Public Finance will implement a multiannual program to support SMEs in order to mitigate the effects of the spread of the COVID-19 virus, by guaranteeing credits, subsidizing interest for these financing, facilities for companies facing financial difficulties, extending the payment deadlines for local taxes due.
Guarantee by the state of the loans granted by the banks
According to GEO 29/2020 on some economic and fiscal-budgetary measures, the Ministry of Finance will guarantee up to 80% of the value of the financing granted to SMEs.
The maximum value of the credits for financing the working capital granted to a beneficiary cannot exceed the average of the expenses related to the working capital of the last two fiscal years, within the limit of 5 million lei.
For investment loans, the maximum value of the financing is 10 million RON.
At the same time, the maximum cumulative value of state guaranteed financing that can be granted to a beneficiary within this facility is 10 million RON.
For SMEs, the state will grant guarantees for loans for financing working capital, excluding interest, commissions and bank charges related to the credit guaranteed by the state at a maximum of 90%.
The maximum value of the financing will be 500,000 RON for micro-enterprises and 1 million RON for SMEs.
The maximum value of each financing granted to a beneficiary cannot exceed the average of the expenses related to the working capital of the last two fiscal years, within the limits provided for above.
The Ministry of Public Finance will subsidize 100% of the interest for the loans to be guaranteed, both for micro-enterprises and for SMEs. The interest will be subsidized from the moment of granting the loan until March 31, 2021.
The outstanding fiscal obligations and other budgetary debts will be paid out of the working capital loan granted under the program.
The loan guarantee period for working capital will be 36 months with the possibility of 36 months extension. For the investment loans the period of 120 months was maintained.
Postponement of payment of taxes
The normative act also stipulates that, during the period of the state of emergency, for the fiscal obligations due starting from the date of entry into force of the ordinance of emergency and unpaid until the cessation of the measures provided by the state of emergency, it is not calculated and the interest and penalties of delay are not computed according to Code of fiscal procedure.
This facility will be maintained for a further 30 days after the cessation of the emergency. In this way, the taxpayers are eligible to participate, for example, in the public procurement procedures carried out during this period or not to cancel their various authorizations.
The Government has also decided to extend the payment term for the building tax, the land tax, respectively the tax on the means of transport from March 31, 2020 to June 30, 2020, during which the bonuses established by the local councils will continue to be received.
Other measures
Also, during the state of emergency, the SMEs that hold the emergency situation certificate issued by the Ministry of Economy, Energy and Business Environment, benefit from the postponement of the payment for the utilities services – electricity, natural gas, water, telephone services and Internet, as well as deferment of payment of the rent for the building with a registered office and secondary offices.
By derogation from other legal provisions, in the ongoing contracts, other than those provided previously concluded by SMEs, which hold the emergency situation certificate issued by the Ministry of Economy, Energy and Business Environment, the force majeure can be invoked only against them after the attempt, evidenced by documents communicated between the parties by any means, including by electronic means, for renegotiation of the contract, in order to adapt their clauses, taking into account the exceptional conditions generated by the state of emergency.