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Romania - Financing Opportunities for Investors
State Aid Schemes
September 2014
McGuireWoods LLP | 2 CONFIDENTIAL
• State Aid Schemes – effective financing source for investment projects
• Romanian State committed to support up to 50% of the eligible expenses
• Maximum value reimbursed – approx. 37.5 million Euros
• Objectives:
Consolidate Romania’s position in the EU as strategic investment hub
Decrease regional social and economic gaps in Romania
Create new jobs
Diversify / expand investment opportunities in underdeveloped areas
Support for strategic investments on the long run
Transfer of know-how and state-of-the-art technologies
Romania - State Aid Opportunities
McGuireWoods LLP | 3 CONFIDENTIAL
• Impact of Romanian State Aid Schemes throughout 2007-
2014
2.175 billion Euros initial budget
691.85 million Euros in approved financing agreements
19,000 new jobs created
59 beneficiaries from strategic industries (automotive,
manufacturing, IT&C, food industry, tourism, medical,
airspace etc.)
Romania - State Aid Opportunities
McGuireWoods LLP | 4 CONFIDENTIAL
Current Funds under the Romanian Ministry of Finance
•State Aid Scheme for New Jobs Creation (GD no.332/2014)
Investment Project SizeNo minimum investment valueMinimum 20 new jobs within 3 years from investment completion
date
Investment Requirements Initial investmentApplicant companies to be reimbursed throughout 2015-2025State commitment to cover part of 2 years’ salary expenses with
new staffBudget Euro 600 million July 1 2014 – Dec 31 2020No EU approval needed
Romania - State Aid Opportunities
McGuireWoods LLP | 5 CONFIDENTIAL
• State Aid Scheme for New Jobs Creation (GD no.332/2014)
Maximum intensities and state aid values
Romania - State Aid Opportunities
Region July 1, 2014 – Dec 31, 2017
Jan 1, 2018 – Dec 31, 2020
Bucharest 15%max. Euro
11.25 million
10%max. Euro 7.5
million
West & Ilfov County 35%max. Euro 26.25 million
North-West, Center, North-East, South-East, South, South-West
50%max. Euro 37.5 million
McGuireWoods LLP | 6 CONFIDENTIAL
• State Aid Scheme for Large Investments
Investment Project Size Beneficiaries: large enterprises with foreign and domestic capital Estimated number: 150 companies Minimum investment threshold: EUR 10 million (value of both eligible
and ineligible assets, w/o VAT)
Investment Requirements Initial investment: greenfield project or business relocated from outside
the EU area (relocation from within the EU area is restricted) Eligible costs: new constructions, leasing of existing constructions,
tangible assets (technical equipment & machinery) and intangible assets (patents, licenses, know-how)
Applicant companies to be reimbursed throughout 2015-2023 Budget for 2014 –2020: EUR 600 million Yearly budget allocation: EUR 100 million No EU approval needed
Romania - State Aid Opportunities
McGuireWoods LLP | 7 CONFIDENTIAL
• State Aid Scheme for Large Investments
Maximum intensities and state aid values
Romania - State Aid Opportunities
Region 2014 –2017 2018-2020
Bucharest 15%max. Euro
11.25 million
10%max. Euro 7.5
million
West & Ilfov County 35%max. Euro 26.25 million
North-West, Center, North-East, South-East, South, South-West
50%max. Euro 37.5 million
McGuireWoods LLP | 8 CONFIDENTIAL
Business Expansion | Federal Public Affairs | Strategic Communications & Grassroots MobilizationState & Local Government Affairs | Emerging European Markets
Atlanta • Charlotte • Charlottesville • Chicago • Columbia • Norfolk • RaleighSpringfield • Tyson’s Corner • Washington, D.C. | Bucharest, Romania
www.mcguirewoodsconsulting.com
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