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FinMin Citu: we are ready to offer guarantees so that SMEs have access to working capital with zero interest

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The executive intends to offer the SMEs guarantees to have access to working capital with zero interest, worth maximum 10 million lei, the positive impact in economy being estimated at almost 70 billin lei, wrote on Sunday night on his Facebook page the minister of finances Florin Citu.

He stated on last Saturday that the Romanian economy will need, if the latest estimates regarding economic growth in the EU are valid, a substantial package of financial resources, of at least 1% of GDP.

The SMEs in Romania estimate that the measures taken to limit the spread of coronavirus will reduce their sales, some of them will suspend their activity and will   have difficulties to collect money, as well as delays in the payment of suppliers, shows the National Council of Private small and medium enterprises in Romania (CNIPMMR) which had a survey to analyse how much the SMEs are affected and how necessary is the intervention of the authorities of the state to adopt measures in favour of the companies, as a result of the intensification of the effects of the Covid19 virus in Europe and the measures taken to limit its spreading.

Asked if they are affected or will be affected by the measures adopted  in the context of the limitation of the infection with Covid-19, 98.6% mentioned ‘yes’ and only 1.4% mentioned ‘ no’.

‘Thus, among the main effects which the entrepreneurs mentioned as a result of Covid-19 are the following: drop in sales (65.6%), drop in turnover (58.8%), temporary suspension of the activity (56.4%) difficulties in collection (54.%), reduction of activity (51.4%), delay in payment of suppliers (47.6%), lay-offs (21.5%) and closing down of companies (12.4%), CNIPMMR says.

As regards the percentage the entrepreneurs estimate for the turnover, 34.4% mentioned that over 60, and 29.5% between 20 and 40, 24.6% of them between 40 and 60 and 11.4% between 0 and 20.

Similarly, the main measures which they consider necessary to overcome this crisis situation are: a programme of state aid regarding the support by subsidies of up to 75% for the payment of the employees in the domains affected by crisis (69.1%); the total and direct payment from the health budget of the medical leaves for the employees with coronavirus or in quarantine (without payment on the part of the employer and later the latter coulde get the money from the Health House) 51.7% ; possible postponement for the payment of the contributions for social insurance and health insurance paid by employers with up to 3 months  (65.4%).

Other measures recommended are: postponement of the payment of tax for SMEs in difficulty (60.3%), the financing of SMEs with interest 0 (38.2%), a communication plan which will cover a site with information about all the measures adopted to support the economy during this period (32.2%), the refinancing of extension of the period for maturity for loans (28.9%).

In the end, the maximum deadline to  adopt economic measures of support is considered by entrepreneurs to be one week (37.8%), one month (33.4%) and two weeks (28.8%).

The survey was made between 12 and 15 March 2020 and interviewed a number of 8374 entrepreneurs who were 61.8% micro-entreprises, 23.2% small enterprises, 9.3% medium enterprises, and 5.7% other forms of organization.

The number of employees of the entrepreneurs in the survey were: 54.8% five employees, 25.2% over 10 employees, 20% between 5 and 10 employees.

The domains of activity of the interviewees were: services (45.1%), commerce (22.1%), tourism (15.5%) industry (7.3%), transport (%) others (3%).

As regards the regions where they work, the entrepreneurs in the survey have the following geographical location: Bucure?ti-Ilfov (28,4%), Centru (15,7%), Nord-Vest (14%), Sud-Est (12,4%), Nord-Est (12,1%), Sud Muntenia (7%), Vest (5,4%) and Sud-Vest (5%).

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