Lack Of Demand & Lending, Leading Problems Of Romanian Businesses

Marilena DINU, GalaŢi

Constantin Nita, Minister for Small- and Medium-Sized Enterprises, Commerce and Business, visited Galati County on Tuesday to identify the leading problems of the local business environment and to present the SMEs in the municipalities of Tecuci and Galati with solutions they could use during the crisis period. "The main problems facing the small- and medium-sized enterprises are the lack of demand for their products and services and the lack of lending opportunities. We are trying to respond to these two problems through the measures taken by the Governemnt to mitigate the current economic situation. I"m referring to the lump sum tax, the offset of some debts to the State, the tax exemption for reinvested profit, loan re-scheduling and grace periods, the introduction of risk funds and guarantee and counter-guarantee funds," Nita said.

He admitted that some companies would go bankrupt, while others would have to downsize their business and their workforce. However, the State is making efforts to mitigate such effects of the crisis. Nita appealed to SMEs in the eastern part of the country to relocate their business to the Republic of Moldova. "Instead of keeping them in Romania without producing anything, they can go to the Republic of Moldova and bring money to Romania," he said. Another solution would be to improve access to EU funding, which currently stands at 180 million EUR p.a. plus 100 million EUR p.a. from the European Commission. "The funds can be accessed as of May. This year, the period for access will be shorter, that is, 45 days instead of nine months. The documentation has been simplified from 27 to 7, which should help SMEs to receive structural funds for development," the minister said.