Towards the end of 2008, signs that a major and imminent financial and economic crisis will shake the world became increasingly visible in Romania’s economic environment. It became clear that we were about to experience first hand what we only knew from books: exactly how an economic disaster affects the market economy as a whole and more particularly what its impact on the conduct of undertakings at various levels looks like. If 2009 was a difficult year, 2010 proved things can get worse, especially for the corporate sector.

While the financial and economic crisis is a current subject on everyone’s agenda for some time, the impact of the crisis on the real economy is now being felt all-around Europe including Romania. Banks are much more risk-aware, thus leading to credit squeeze and companies experiencing difficulties with credit access.

In this context, although the European Union (EU) insists on its objective of a less and better targeted State aid, the European Commission (the relevant authority in handling State aid matters at EU level – the Commission) has recognised that, subject to certain conditions, there is need for State aid in order to tackle the crisis. Consequently, while companies are focused on identifying the most suitable funding option(s) for their business in the current context, Member States are undertaking State aid actions to support companies facing financial distress.