OREANDA-NEWS. April 27, 2011. The budget of the National Economic Youth Support Program for 2011 will total 80.1 million leis.  Over 270 business projects will be financed under the program this year. Over 270 business projects will be financed under the program this year. It was said at the meeting of the Program’s coordinating board held to discuss the report on realization of the program in 2008-2011, its prospects and budget for this year, according to the

Ministry of Economy. According to the committee’s decision, the production infrastructure projects construction costs and the turnover means for start up business will be financed in the amount of up to 10% and, respectively, 20% of the amount of the provided loan.

The maximum amount of the credit will total 300,000 leis with a 40% grant part provided that the credit is repaid in time. Given the numerous requests of young businessmen – Program’s participants, the Program’s coordinating board decided to consider the possibility of exempting the equipment imported under the program from the VAT and customs payment. Another proposal concerns increasing the maximum age of credit recipients under the Program – from 30 to 35 years old, with the respective alterations to be introduced into the legislation.

The grant part of the credit – 40% - is covered by the development funds, provided by the European Commission, allocated for capitalization of the National Economic Youth Support Program.

The lending part – 60% - for subprojects will be financed by the Directorate of the credit line from free turnover means, accumulated on the investment credit lines of foreign state loans. Investment projects worth 132.7 million leis, including with the grant part of 52.86 million leis have been funded under the Program since it was launched. 900 workplaces have been credits. About 80% of the funds were provided for business projects in agriculture and food industry, 18.6% - business projects in production of building materials and woodworking, less than 1% - services and 2.3% - other sectors of economy.

Over 80% of credits were provided for 5 years, others – up to 3 years. With assistance of the National Economic Youth Support Program, 81% of young entrepreneurs – Program’s participants opened their business, and 18.6% - asked for financing to develop their business.