European Small and Medium Enterprises in Romania secure funds of over 600 million euros through the InvestEU guarantee, which is backed by the Recovery Plan
The InvestEU program, a crucial component of the EU’s National Recovery and Resilience Plan (PNRR), has been instrumental in supporting the growth of SMEs across member states, including Romania. This initiative, launched in 2023, provides guarantees that reduce lending risks for financial intermediaries, enabling SMEs to access more affordable and longer-term financing for investments and innovation projects.
The Key benefits of the InvestEU guarantee instrument for Romanian SMEs are:
- Improved access to finance: The guarantee reduces the risk for lenders, encouraging them to provide loans and equity investments to smaller firms that might otherwise struggle to secure funding.
- Lower financing costs: SMEs benefit from better credit conditions, such as lower interest rates or fees, thanks to the partial guarantee coverage.
- Support for innovation and digitalization: Funds supported through InvestEU can target SMEs investing in digital transformation, green technologies, or expansion activities aligned with EU policy priorities.
- Leverage of private investments: By screening bank risks, InvestEU mobilizes additional private capital that otherwise would not have been deployed.
- Complementarity with other PNRR components: The guarantee works alongside grants and technical assistance, boosting the overall impact on Romania’s economic recovery and resilience.
Since 2023, the programme has helped Romanian SMEs recover from pandemic-related setbacks and accelerate growth and modernization under PNRR goals. The Romania compartment of the InvestEU programme has a total envelope of EUR 672 million, and more than 2,000 SMEs in Romania have accessed a total of EUR 610 million in funding.
The InvestEU guarantee allows for reduced collateral and down payment requirements, and EIF's partner banks can offer improved financing terms, such as lower interest rates, to SMEs. The funding was provided through the InvestEU guarantee instrument financed by the National Recovery and Resilience Plan (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 European Investment Fund (EIF) manages direct guarantees granted to local financial intermediaries.
The Sustainability Guarantee within the InvestEU programme supports environmentally friendly and inclusive investments, while the SME Competitiveness Guarantee aims to improve access to credit across a broader range of companies and sectors. On average, the loans issued have been around EUR 300,000, and the program remains active, continuing to support bank lending to SMEs and individuals. The financing was made possible through the Romania-specific compartment of the InvestEU programme.
Business owners in Romania have benefited from the InvestEU program, a key part of the EU's National Recovery and Resilience Plan, as it offers guarantees that reduce lending risks, making it easier for financial intermediaries to provide affordable and longer-term financing for investing in their businesses and innovation projects. Moreover, the InvestEU guarantee instrument has contributed to improved access to finance for Romanian SMEs, lowering their financing costs and providing opportunities for environmental and inclusive investments through the Sustainability and SME Competitiveness Guarantees.
