40m euros from RICOP programme finally released

After a five-month delay due to the postponement of privatisation, the European Commission at the end of last week finally approved the Romanian Government’s using 50% of the RICOP programme funds, that is 41 million euros.

The funds will be used to partially repay severance payments and for various grants for the active work force employment measures and for those measures to lessen the social impact, for public works and for financing SMEs.

“The approval to use the funds has become possible due to the progress made by the current Government by signing the privatisation contract of Sidex Galati and by meeting the requirements regarding the restructuring and/or privatisation of the companies included in the RICOP Restructuring Plan,” reads a Finance Ministry release.

The RICOP programme (the Programme for company restructuring and professional employment) is financed by the European Union with 100 million euros in Phare funds and is aimed at creating jobs and retraining the work force laid off due to the restructuring and the privatisation of loss-making state-run companies.

“The remaining funds up to 100 million will be released when the Government shows it has made some progress in restructuring and privatising certain loss-making state-run companies,” says Angela Cristea, spokesperson for European Commission’s Delegation in Romania.