Legal aspects concerning the mihail kogalniceanu programme for small and medium sized enterprises

AuthorRemus Baciu/Adriana Deac
Lecturer Remus BACIU
Assistant professor Adriana DEAC
The Mihail Koglniceanu Programme for small and mediu-sized enterpr ises is a multi-annual programme
meant to boost the cr eation and development of small and medium sized enterpr ises, consisting i n a c redit line,
amounting up to RON 125.000 for one SME yearly, with an interest pa rtially subsidised and, possibly, guaranteed by
the state. In order to make it easier for SMEs to have access to credits, the Pr ogramme regulates a number of
facilities for partia l subsidization of the interests and, as the ca se may be, for guara nteeing the credits gr anted to the
SMEs by the credit institutions, a s well as a number of specific obligations, na mely eligibility criter ia that the SMEs
should meet in order to benefit from these facilities.
Keywords: Mihail Koglniceanu Programme, SMEs, government programme, inter est subsidization, government
guara ntees, credit supply
JEL Classification: K20
The global financial and economic crisis is the main cause that has lead to the significant
rise, this year, in the bankruptcy rate among SMEs. Statistics and polls made recently confirm
that many SMEs, particularly those set up more recently, are affected by the economic crisis
whose end cannot yet be foreseen. In Romania as well, many companies go out of business / go
bankrupt, some willingly, but, more and more of them because insolvency proceedings are
instituted at the request of the creditors. In the struggle to survive on the market, the efficient
management of the company’s own financial resources and attracting external funding prove t o
be alongside the innovation of products and services supplied on the market really decisive
factors, which the entrepreneurs are compelled to take into account. The negative consequences
of the economic crisis on the Romanian business environment have materialized throug h much
stricter conditions for credits/loans and limited access for SMEs to credits and guarantees.
Consequently, the number of economic operators has diminished on the market as a consequence
of bankruptcies among SMEs because of their difficulty in managing cash flows at a time of
economic crisis.
The EU efforts to stimulate the business environment during the economic crisis have also
been replicated by the national authorities, the latter trying to find legislative solutions to
maintain the activity and the jobs among SMEs, as well as to increase their competitiveness.
Therefore, there are more and more requests to the state to intervene in the real economy
vigorously and decisively in order to boost/relaunch the economic activity. The state support is
particularly expected concerning/ as regards to facilitating the access of SMEs to loans and
guarantees. The state is also called upon to take measures towards improving the current business
environment. Among the measures envisaged are those concerning the creation of suitable
conditions to have access to loans and guarantees for SMEs.
The statistics show that one of the problems facing the economic operators is the difficult
Remus Baciu, Bucharest University of Economic Studies, Law Department, E-mail:
Adriana Deac, Bucharest University of Economic Studies, Law Department, E-mail:

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