Amendments of the state aid scheme for assets

12.05.2016

The state aid scheme for assets (regulated by G.D. 807/2014) has been amended, as it has been recently published on the website of the General Secretariat of the Romanian government, with the aim to initiate a more clear understanding of the state aid scheme requirements and to improve the selection process of investments.

The new regulation brings updates and novelties on submission procedure, technical aspects and budget level.

The additional technical clarifications refer mainly to explanations and definitions for third party, investment timeframes, group policy, additional eligibility criteria for intangible assets, etc.

The new regulation brings novelty regarding the submission process that will be performed during 30-day calls, announced in advance by the Ministry of Public Finance. Each call will be announced with at least 45 days prior to the opening day. Another new element of the scheme is the introduction of a scoring procedure for selecting those financing requests that will go further into analysis for obtaining the financing agreement. The score will be determined based on various criteria, such as investment value, initial investment category, location, profitability and share capital, the result being communicated within 5 working days from session closing.

Specific timeframes regarding call announcement, the length of the calls as well as of the next procedural steps until obtaining the financing agreement have been introduced or prolonged. This will support investors in a more accurate estimation of their investment plan.

The total budget allocated for this state aid scheme was increased to EUR 925 million, while the annual budget stays at EUR 145 million. Should the annual budget not be entirely used in the first session, the remaining part shall be carried forward to the following call for applications.

Following these legislative changes, it is expected that the Applicant’s and Payment Guides to be also updated by the Ministry of Public Finance.

The state aid scheme for assets was launched in 2014 by the Ministry of Public Finance, with the main purpose to support regional development through investments higher than EUR 10 million. The state aid intensity reaches 50% for most of the regions in Romania, exception is 35% West Region and Ilfov and 15%/10% for Bucharest.