According to the Small Business Act (SBA) Fact Sheets, Romania offers reasonable conditions for access to various sources of financing for SMEs, although progress in this area has stalled, and the return of the financial crisis has created a very difficult context for enterprises.
Although there has been a significant decrease in the proportion of rejected loans, - from 48% in 2009 to 18% in 2011 - the share of Romanian business owners who report that they have noticed a deterioration in the willingness of the banks to provide loans has remained stable of 41%, which is a high level and well above the EU-average of 30%. This suggests that the continuing tightening of the standards applied to borrowers has been effective in discouraging many entrepreneurs from applying for a loan. At the same time, the conditions for accessing public financial support, including guarantees, have also become more restrictive.
On the positive side, the cost of credit for small businesses (for loans under EUR 1 million) is only about 17% higher than for larger enterprises (which generally require loans of over EUR 1 million), and this gap has narrowed slightly since 2010.
Institutions and systems that can facilitate access to finance, such as credit registry bureaus and the legal rights system, are as sound as in most other EU countries.
A number of policy measures have been taken recently to improve the situation in this policy area in Romania.
In 2011, the Government adopted Order no 9/2010 concerning the issuing of guarantees by the National Guarantee Fund for SMEs to the beneficiaries of structural funds, based on the contracts signed with the Management Authorities or Implementing Bodies.
In 2011, the program for financing SMEs in the crafts industry was implemented. This program has disbursed grants for the development and promotion of the SMEs in the crafts industry.
Finally, the Program Mihail Kogalniceanu took steps to improve the cash flow and profitability of the SME sector by subsidizing interest on loans or offering loan guarantees through the National Guarantee Fund for SMEs.
Research, articles etc.
|Key indicators on access to finance|
For details on SMAF index and methodology please click here.
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Source: Chart compiled using ECB data
Note: Loan volumes and interest rate data for 2012 are to the period September 2012 only (due to data availability as at November 2012).
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Appendix: ACTIONS SUPPORTING ACCESS TO FINANCE FOR SMEs (PDF) [397 KB]