Nine financing grants of 491.2 million lei through state aid scheme were approved

The first nine financing agreements granted on the basis of the state aid scheme for stimulating major investments (807/2014) were signed today by the Minister of Public Finances, Mr. Eugen Teodorovici, on November 12th. The signing ceremony took place at Victoria Palace, in the presence of the Prime Minister, Ms. Viorica Dăncilă.

"I am very pleased to have signed today the first 9 investment projects that will bring added value to the Romanian economy. The benefits they will bring have to be seen from two perspectives - the development of the region where the investment will be made and the creation of almost 2,000 of new jobs, "said Minister of Public Finance, Mr. Eugen Teodorovici.

In the first stage, 9 projects with a total value of 1.3 billion lei were selected, for which state aid amounting to 491.2 million lei was approved, out of an allocated budget of 614 million lei.

The approved projects will create 1,947 new jobs and will contribute 515.1 million lei to regional development through the additional taxes and fees paid as a result of their implementation.

These projects invest in the automotive industry, the construction materials industry, the aerospace industry, health and social care.

Among the companies that got approval for financing are: TeraGlass Group who has requested an investment aid of 6.8 million euros for three companies in the group - TeraPlast SA, TeraGlass Bistrita and Depaco, mineral water bottler Romaqua Group, MG TEC Industry, a Romanian-owned company, active in the field of manufacture of household or sanitary products, Therme Nord Bucharest, that applied for State aid to set up a new unit, technologically independent of the existing facility.

Stonevault Romania with production of furniture and mattresses, requested state aid for the establishment of a production unit for the manufacture of springs. Swiss based company Jaeggi Industries active in the manufacturing of ventilation and refrigeration equipment and Universal Alloy Corporation Europe active in the manufacturing of aluminum components for the aerospace industry are also requesting state aid to set up or expand production units.

The Ministry of Public Finance administers the state aid scheme established by H.G. no. 807/2014, which aims at regional development by stimulating investments with significant impact in the economy by financing tangible and intangible assets related to investment projects.

The filing session of the grant agreement was opened on 10 September 2018 and has an allocated budget of 614 million lei.

At the same time, in order to increase the accessibility of the companies to the state aid investments, the Government has recently approved a number of amendments consisting of: establishing the rule that all applications for grant agreement will be analyzed. For all eligible investment projects, the necessary amounts from the current budget plus the additional amounts to the budgetary rectification, respectively the annual budget law, will be secured.

lowering the minimum investment project ceiling to be eligible, from € 3 million to € 1 million.

So far, 46 applications have been submitted for financing, for investment projects whose value exceeds 4.5 billion lei, for which state aid is claimed for over 1.6 billion lei.