Ministry of Economy Faces Potential Arrears of 700 Million Lei by Year-End

Current Estimates Suggest Significant Shortfall in Funding for Start-Up Nation Program

According to recent estimates, the Ministry of Economy, Entrepreneurship and Tourism (MEAT) may record arrears of up to 700 million lei by the end of the year. Currently, there are already unpaid accounts of 366 million lei, as per the ministry’s data.

The Start-Up Nation 2022 program, which provided entrepreneurs with grants of up to 40,000 euros, had a total budget of 1.5 billion lei, entirely funded by the national budget. However, entrepreneurs who benefited from this program are facing pressure from banks, which threaten to prevent their businesses from repaying bridging loans secured by these grants.

The situation has arisen due to a lack of funds necessary for paying the accounts. The Ministry of Finance has not provided the resources requested by MEAT so far, leading to a significant shortfall in funding.

Minister of Economy Negotiates with Ministry of Finance to Unlock Necessary Funds

The Minister of the Economy, Radu Ștefan Oprea, has explained that he is negotiating with the Ministry of Finance to unlock the necessary amounts. “I spoke to the Ministry of Finance, I showed the profitability of the Startup Nation program, the fact that it is a good program for the economy, I did the performance indicators. Today we have 366 million lei in due projects, which have been verified, and by the end of 2024 we will reach 600-700 million lei. I asked for the money from the Ministry of Public Finance,” declared Oprea.

More than 1,500 settlement applications, representing approximately 25% of all projects, are pending in the regional development agencies. Despite the budget allocation of 1.5 billion lei, most of the money has not yet been distributed, with MEAT making payments of less than 300,000 lei so far.

This situation threatens the stability of many businesses, which depend on grants to cover the costs of employee salaries, which they must maintain for a period of two years. Many entrepreneurs warn that a lack of payments hampers their ability to continue their business.