SME Ask Government For Special Crisis Containment Programme

A.T.

The crisis containment programme elaborated by the Government at the beginning of the year has had no effects on the economy so far, according to Ovidiu Nicolescu, President of the National Council of Private Small- and Medium-Sized Enterprises in Romania (CNIPMMR). He told a forum organized by Unimpresa yesterday that the Government had created the crisis containment programme having major enterprises in mind, while small- and medium-sized enterprises needed distinct measures adapted to their specificity.

Ovidiu Nicolescu said he would present the Government with an ample project designed to stimulate investment and support the development of small- and medium-sized enterprises. The project stipulates the allocation of at least 0.5% of the GDP to SME development, the widespread application of the profit tax exemption for reinvested profit, VAT payment upon collection instead of VAT payment upon invoicing and measures to improve SME access to public procurement procedures. Small- and medium-sized enterprises are also asking the Government to improve the access to structural funding, stimulate employers to create new jobs and hire unemployed persons based on incentives in the form of tax exemptions for the respective employees.

SMEs also want a revival of lending, the rapid implementation of counter-guarantee funds and the capitalization of CEC Bank. Another proposal would be to recapitalize EximBank with reinvested profit and stimulating the bank to offer dedicated products to small- and medium-sized enterprises.

According to a poll made by CNIPMMR between October 2008 and March 2009, over half of the small- and medium-sized enterprises downsized their business, 23% maintained the same volume of business and 14.8% went bank­rupt.