FLORIN JIANU, DELEGATE MINISTER FOR SMES: "We want to expand the activity of the FNGCIMM"

The Government is working on a memorandum which stipulates the expansion of the activity of a National Fund for the Guarantee of SME Loans, which would become the Fund for the Guarantee of Loans Using European Grants, said Florin Jianu, Delegate Minister of Small and Medium Enterprises, the Business Sector and Tourism.

Some of the bankers who attended the conference organized by BURSA said that the relationship between the financial institutions and the FNGCIMM is "more theoretical than practical", claiming that, after the parties sign the partnership agreement, the FNGCIMM unilaterally amends the agreement.

"In the event of any guarantee that exceeds 100,000 Euros issued by the FNGCIMM, the level of the collateral drops from 80% to 70%, upon the unilateral decision of the Fund, and banks merely get notified after the fact. As a result, predictability is very low", said one of the bankers, who emphasized the fact that the relationship between the two parties used to be very good up until a year and a half ago. "Now, the FNGCIMM no longer represents a reliable partner in the long run", the quoted source said.

In response, Radu Graţian Gheţea, CEO of CEC Bank and head of the Romanian Banking Association (ARB), said that it is not a matter of flawed management, but of the manner in which a system operates. He said: "A guarantee fund that has to obey some imminent constraints can not function the same way a private fund does. There is an opinion that we should set up a fund, either by increasing the capital of the FGCR (ed. note: the Fund for the Guarantee of Rural Loans), or by setting up a new fund with private partners".

Concerning the financing of the SME sector, Florin Jianu felt the need to stipulate that a development bank should have three components - the funding of start-ups and microenterprises, the automatic funding of projects backed by European funds, without doubling the requirements for qualifying for loans, and the granting of bridge-loans.

• Seven new programs for supporting SMEs

The Department for Small and Medium Enterprises, the Business Sector and Tourism (DIMMMAT) proposes seven new programs for supporting SMEs, which would proceed starting next year, and the supplementation of allocated funds has been requested, from 60 million lei to 170 million lei, delegate minister Florin Jianu announced.

The official mentioned that among other things, the new programs concern microindustrialization, supporting brands, internationalization, research-development-innovation, the economy of rural areas, and the social economy.

Florin Jianu mentions that the authorities have significantly simplified the manner of implementation of these programs: "First of all, we are no longer requesting those certificates for confirming that they have no debts (...), only a statement at their own risk that they have no debts, and then we will conclude an agreement with the ANAF to check the situation of every entrepreneur. I do not see the point of those certificates".

Debate has already begun on programs for supporting SMES, according to the minister, who mentioned that they also include the components that bring innovative technologies, as well as internationalization initiatives.

Seven more programs for supporting small and medium enterprises are currently ongoing.

One of them is the program that supports the jobs subsidized for students that graduate in 2014. 40 million Euros in European grants are allocated for this program, and so far it has created over 3,000 jobs. The initiative has been operational since the end of August, and approximately 600 companies benefit from it, Mr. Jianu told us.

"For a small and medium enterprise we support a maximum number of 3 new jobs for new graduates, for a small company - 7 jobs, and for a medium-sized company - 15 new jobs", the minister told us, who said that the net monthly salary is 900 lei for a high-school graduate and 1,300 lei for a college graduate. Companies have to maintain those jobs for the period that the amounts have been allocated for.

During yesterday's conference, the delegate minister for SMEs has also brought up the Strategy drafted by the DIMMAT (Department for SMES, Business Sector and Tourism), and he stressed that it is based on the following five pillars: entrepreneurial education, access to financing, access to markets, innovation research and development and administrative flexibility.

The government strategy for developing the middle and small enterprises sector has been approved by the Government in September and is currently in the process of being implemented.