Romanian banks have approved only 49 loan requests placed by small and medium-sized enterprises (SMEs) under the Government-backed program IMM Invest, as of Tuesday, May 19, according to Profit.ro quoting the public data on the program’s website.

In his speech in front of the Parliament, on Monday, prime minister Ludovic Orban claimed that the banks approved some 5,000 loans - but the paperwork takes time, and that is why only a limited number of recipients have signed the contracts.

The SME Credit Guarantee Fund (FNGCIMM), which manages the Government-backed program, has received 57,912 applications, of which it has sent to banks 52,026, according to data as of May 19. The banks have rejected over 1,000 requests.

Among the companies that have already obtained loans are Rosiori Productie (21 employees and EUR 3.4 mln in revenues last year), which produces vegetables and is one of Lidl Romania’s suppliers. Furniture manufacturer Caroline Com Pitesti is also among the beneficiaries. The company had a turnover of EUR 0.73 mln last year and employs 29.

Rexton Group from Ploiesti was the first beneficiary company and will use the loan to start production of face masks and shields. Promed System Targoviste, a medical clinic with 93 employees and business of EUR 5 mln in 2019, is also on the list of beneficiaries.

The list includes several companies in the health sector, such as dental clinics, pharma distributors, and pharmacies. Car distribution companies are also among the beneficiaries. Three Skoda dealers received financing: Auto Best from Dambovita, Eco-Car from Harghita, and Delcar from Brasov.

editor@romania-insider.com

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