PNRR update – €2.2 billion for companies
May 14, 2021
Among the reforms and investments foreseen and negotiated under the National Recovery and Resilience Plan (PNRR), a consistent part aims at direct financing for the business environment.
Therefore, small and medium companies (SMEs), but also large companies in Romania will be able to benefit from a budget (proposed and still under negotiation) of about €2.2 billion, both for financial instruments and grants, according to the latest published information on the website mfe.gov.ro.
- Financial instruments with intermediaries such as EIB, EIF and most likely also EBRD – €1.35 billion:
- Portfolio guarantees for solvency, climate action and energy efficiency – about €550 million for SMEs and mid-caps;
- Venture capital instrument for SMEs – about €500 million for SMEs and mid-caps;
- Fund of Funds for digitization, climate action and other areas of interest – about €300 million for large enterprises;
- In addition to the financial instruments above, there will be multiple grant schemes (nonreimbursable funds) under the various components – €835 million:
- Digitization of SMEs – grants, scheme administered by MIPE – about €200 million;
- A support measure for listing of Romanian companies on the stock exchange, implemented by MIPE, with the support of the Bucharest Stock Exchange – about €35 million;
- Various support schemes to boost competitiveness, with a focus on innovation and the creation of digital technology, implemented by the Ministry of Research, Innovation and Digitization – around €200 million;
- Various support schemes for the promotion of renewable energies, implemented by the Ministry of Energy – about €200 million (the amount is currently being negotiated);
- Various support schemes for investments, especially in the area of innovation and new technologies applied in the production area, implemented by the Ministry of Finance – about €200 million.
- PNRR in a nutshell:
The European Union has decided to set up a temporary financial instrument dedicated to member states – #NextGenerationEU, with a budget of € 750 billion, separate from the EU’s long-term budget, the Multiannual Financial Framework (MFF), for the period 2021-2027.
Its main purpose is to provide support to each Member States to meet the challenges posed by the Covid Crisis19 and its economic effects.
Through the PNRR, Romania has a budget of 29.2 billion euro, of which 14.248 billion in the form of a non-reimbursable grant and approximately 14.935 billion in the form of loans.
The plan refers to reforms and investment projects that must be implemented (and paid) by 2026, based on 6 main pillars:
- Transition to a green economy;
- Digital transformation;
- Smart, sustainable and inclusive economic growth;
- Social and territorial cohesion;
- Institutional health and resilience;
- Children, youth, education and skills.