FOR SMALL AND MEDIUM ENTERPRISES Loans with interest subsidized by the state, starting in September

Starting September 9, small and medium enterprises (IMM) will be able to register for "The Kogălniceanu Card", in order to access loans with interest subsidized by the state, PM Emil Boc said on Friday.

He said: "We have set the schedule for the implementation of the Kogălniceanu program and, on September 9th 2011, SMEs will be able to apply for this program, on the website, in order to get the support of the state in receiving subsidies on the interest and guarantee of loans".

Emil Boc claims that supporting SMEs through this program will create jobs, preserve the existing ones and will help generate economic growth.

"In this extremely difficult period, the government has focused its activity on two components: the restructuring of government spending and the most important component, in our opinion, is providing support to the economy", he said.

The PM added that the economy needs to be supported by the investment programs, and added that, out of all the countries of the EU, Romania has the largest percentage of the GDP allocated for investments,.

He said: this year: "After the revision of the budget, investments amount to 36 billion lei. In 2012, investments will amount to 43 billion lei, representing 7.33% of the GDP, which means that the government is focusing its policies on supporting investments and job creation".

The "Kogălniceanu card" Program will allow small and medium enterprises to take out bank loans of up to 125,000 lei/year. The National Fund for the Guarantee of SME Loans (FNGCIMM) will guarantee, in the name and on behalf of the state, the loans which will be taken out by small and medium enterprises. The guarantee of the state will cover a maximum of 80% of the requested loan, excluding interest, commissions and other expenses owed by the beneficiary, to the lender, but it will not exceed 100,000 lei. The interest will be subsidized up to 70%, within the limit of 6.5% a year.

The budget allocated for this program amounts to 24 million lei for subsidizing interest payments and 400 million lei for guaranteeing the loans, and it is estimated this program will have about 4,000 beneficiary companies.