European Commission announced on Thursday that it has approved the state aid scheme worth 4.521 billion lei (935 million euro) introduced by Romania to support companies affected by the coronavirus pandemic, informs a press release of the EU Executive.

This support will take the form of direct grants for working capital and productive investments and will be co-financed by the European Regional Development Fund, according to Agerpres.

The measure will be accessible to SMEs active in certain sectors and to large companies with links to eligible SMEs, which have been adversely affected by the coronavirus pandemic. The aim of the measure is to provide liquidity for these companies, which allows them to continue their activities, start investments and maintain jobs.

The European Commission has found that Romania’s scheme is in line with the conditions set out in the temporary framework: direct grants will not exceed 100,000 euro for each company operating in the field of primary production of agricultural products, 120,000 euro for each company active in the fisheries sectors and aquaculture and 800,000 euro for each company active in all other sectors. The scheme will run until 31 December 2020.

“The Commission has concluded that this measure is necessary, appropriate and proportionate to remedy serious injury to the economy of a Member State, in accordance with Article 107 (3) (b) of the Treaty on the Functioning of the European Union and the conditions laid down in the temporary framework to support the economy in the context of the COVID – 19 epidemic,” the community Executive said.