The Romanian government is expected to pass a state aid scheme for the construction materials industry, with a total budget of EUR 150 million from the state budget, according to Profit.ro. The project must be notified to the European Commission.

The target is to increase construction materials production by 10% (by EUR 500 mln) and close the trade gap in this sector. At the same time, it is expected to create 20,000 new jobs.

A single beneficiary will be able to obtain funding of up to EUR 50 mln but no more than 75% of the project's value.

The aid will be granted per region, but six counties (Gorj, Hunedoara, Dolj, Galati, Prahova and Mures), covered by the "just transition" scheme, will benefit from higher amounts.

The grants will be given for tangible or non-tangible productive assets needed to increase the quality of domestic production of construction products and materials as a prerequisite for increased exports.

If the difference in the value of the investment not covered by the non-reimbursable state aid is achieved through lending, the state guarantees 80% of the loan used through the National Credit Guarantee Fund for Small and Medium Enterprises (FNGCIMM) and the Romanian Counter-Guarantee Fund (FRC), excluding interest, commissions and bank charges.

iulian@romania-insider.com

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