Government Ordinance on granting financial support for tourism and public catering enterprises published in the Official Gazette
Government Emergency Ordinance 10/2021, regarding measures for granting financial support to enterprises in the tourism and public catering sector, which amends OUG 224/2020, has been published in the Official Gazette.
“The compensation funds total 1 billion RON. If the sum of compensation claims exceeds this amount, then companies will receive money proportional to their funding request,” stated Claudiu Năsui, Minister of Economy, Entrepreneurship, and Tourism, immediately after the Government approved the new act.
The measure is welcome, but it is far too little considering the sector’s need is 4-5 times higher. And, according to the OUG, the 20% for which operators are eligible turns into at most 5% coverage of losses.
The principle is simple: the state wants to give 20% of the turnover difference between 2020 and 2019, but for this money, operators must survive for another 2 years, after the money had been promised for June-July 2021.
Tourism and public catering operators had to choose between the “first come, first served” principle or “money for everyone.” And they chose money for everyone, with the idea that there would be more money and it would arrive in a timely manner.
The most delicate problem is that the deadline has been pushed back by 6 months compared to previously stated terms. It was initially about opening the application by June 30, 2021, with payment within 30 days. Now we are talking about signing contracts by the end of the year and payments by June 30, 2022. God forgive me, how many of us will still survive until then?, asks the head of travel agencies in Romania.
On the other hand, they also included that it should apply to eligible, licensed, and authorized activities. That is, it is not enough to have the CAEN code, but also to have carried out activity under it.
According to calculations made by ANAT around September-October, there is a need for approximately 800-900 million EUR, i.e., somewhere around 4 – 4.5 billion RON, to cover the 20% the authorities were talking about.
After the application, you should receive 20% of the turnover. That is, if you have a negative turnover in 2020 vs. 2019, you are entitled to request 200,000 RON, and from this, you will receive 40,000 or 50,000 RON, and for this money, you must commit to continuing the activity for about another 2 years.
“On this principle, the small ones will receive peanuts, and the large ones, who are the main contributors to the state budget, will no longer be able to sustain their activity. On the other hand, we will also see restaurants in the market that will only receive 500-1,000 RON if we follow the calculation method,” says Dumitru Luca.
According to the head of ANAT, the new ordinance is a mix of good and bad things, because it seems the state has agreed not to exclude firms with debts from eligibility.
Frequently Asked Questions
What is the total budget allocated through OUG 10/2021?
The total budget for compensating tourism and public catering enterprises is 1 billion RON, which will be distributed proportionally if claims exceed this threshold.
What is the main condition for maintaining the business?
Operators receiving this financial support must commit to continuing their activity for at least 2 years after receiving the funds.
When will the payments be made to eligible companies?
According to the new regulations, contract signing is scheduled by the end of 2021, and actual payments will be made by June 30, 2022.