State incentives for companies to invest in poverty-affected regions

State will pay some 800 million RON (approx. 275 million euros) for companies that continue to invest in underdeveloped areas, a Competition Council release informs.

This summer, the regulation authority organized a monitoring operation for the companies that took advantage on the 2006 state aid, checking 1393 companies with permanent investor certificate in the 28 underdeveloped areas.

The control took into account all the incentives offered since January 2003.

The total amount of investments realized in poverty-affected areas until September 15, 2006 was 1.8 billion RON, mostly spent on terrain acquisition, buildings and industrial sites construction, equipment and machine acquisition for the specific activities.

Incentives came as tax deduction (208 million RON) and non-refundable funds.

The incentives led to the creation of 51,500 jobs.

Out of the 1393 verified companies, 1318 are still eligible for incentives.