Tuesday, June 9, 2009

EU Clears Romanian Plan To Help Cos In Need Of Financing

BRUSSELS -(Dow Jones)- The European Commission Monday cleared Romania to give aid to companies who have trouble accessing financing as a result of the credit squeeze.

Under the scheme Romanian authorities can give subsidized guarantees for investment and working capital loans concluded before the end of 2010, and it applies only to companies that were not in difficulty before July 2008.

"The Romanian measure facilitates access for firms to loans. This is an effective way of encouraging business investment and economic recovery without unduly distorting competition," Competition Commissioner Neelie Kroes said.

The reduction of the guarantee fee can be valid up to two years, and in some cases where the duration of the underlying loan exceeds two years, the guarantee premiums may be applied for an additional maximum period of four years, the commission said.

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