ELKB State aid scheme in Romania, September 2018

On July 30, the Romanian Ministry of Finance issued an order launching the procedure whereby investors may obtain non-reimbursable funding for investments made in Romania.

The funding is regulated by Government Decision no. 807/2014 on the setting up of a State aid scheme having as object the stimulation of investments with significant economic impact (“Scheme”), enforced for purposes of the measures discussed herein by Order no. 2629/July 30, 2018 of the Minister of Finance approving the guide for applicant seeking financing under the Scheme.

The specific aim of the Scheme is to foster regional development via investments with “significant economic impact”. The Scheme was thus issued under the regional development related provisions of Commission Regulation (EU) no. 651/2014 of 17 June 2014 declaring certain categories of aid compatible with the internal market in application of Articles 107 and 108 of the Treaty on the Functioning of the European Union (“GBER”). This means that aid measures granted pursuant to the Scheme need not be previously approved by the European Commission.

The call for eligible projects will start on Monday, September 10, 2018, and the EUR 145 million available budget will be split among selected beneficiaries on a first come – first served basis.

Per the provisions of the Scheme, the source of financing consists of Government funds in the form of budgetary credit lines, payable until 2023.