European Small and Medium-Sized Enterprises (SMEs) in Romania are supported through a guarantee from the InvestEU program, backed by the Recovery Plan, to the tune of over 600 million euros
Small and medium-sized enterprises (SMEs) in Romania have benefited significantly from the InvestEU guarantee instrument since 2023, with more than 2,000 SMEs accessing over EUR 610 million in funding. This funding, facilitated through the Romania-specific compartment of the InvestEU programme, has been instrumental in supporting the growth and development of these enterprises.
The InvestEU programme functions as a risk-sharing instrument, providing budgetary guarantees that encourage banks and financial intermediaries to lend to SMEs. This approach addresses market failures such as the difficulty for SMEs to secure necessary capital, aligning with the broader EU strategy to foster competitiveness, innovation, and sustainability in SMEs.
In Romania's context, the National Recovery and Resilience Plan (PNRR) has channeled part of its resources into leveraging the InvestEU instrument. This strategic move ensures that the guaranteed funds reach SMEs efficiently and support their development trajectories from early stages through to scaling. The InvestEU guarantee allows EIF's partner banks to offer improved financing terms, such as lower interest rates, reduced collateral and down payment requirements, and longer repayment periods.
The programme supports two key pillars: the Sustainability Guarantee and the SME Competitiveness Guarantee. The Sustainability Guarantee is designed to accelerate the green transition by supporting environmentally friendly and inclusive investments, while the Competitiveness Guarantee aims to improve access to credit across a broader range of companies and sectors.
The programme continues to be managed by the European Investment Fund (EIF) and local financial intermediaries. Twelve banks are currently disbursing loans under the programme, and the funding was provided through the InvestEU guarantee instrument and the PNRR. Minister Dragos Pișlaru stated that the programme is the result of a strong partnership between the Romanian Government, the European Commission, the European Investment Fund, and local banks.
The InvestEU guarantee has provided a crucial financial backbone, resulting in enhanced SME financing availability and contributing to Romania's economic resilience and growth potential within the EU framework since 2023. The programme was built on the experience gained through the SME Initiative launched in 2016, and it continues to support bank lending to SMEs and, in some cases, individuals. The programme's overall objective is to make credit more accessible to Romanian businesses, thereby fostering a conducive environment for economic growth and innovation.
Businesses in Romania have been able to access significant amounts of finance for investing, with more than 2,000 SMEs receiving over EUR 610 million in funding through the InvestEU programme since 2023. This boost in financial support, facilitated by the National Recovery and Resilience Plan and the InvestEU guarantee instrument, has been instrumental in fostering the growth and development of these enterprises.
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