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Monetary Support and State Aid under the Pandemic Challenges in Romania: A Comparative Approach.

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Bibliographic Details
Title: Monetary Support and State Aid under the Pandemic Challenges in Romania: A Comparative Approach.
Authors: Clichici, Dorina, Drăgoi, Andreea-Emanuela, Timuș, Angela
Source: Romanian Journal of European Affairs; Jun2024, Vol. 24 Issue 1, p67-85, 19p
Subject Terms: GOVERNMENT aid, COMPARATIVE method, MARKET sentiment, COVID-19 pandemic, WHOLESALE trade, PANDEMICS
Geographic Terms: ROMANIA
Abstract: The COVID-19 pandemic has rapidly led to a severe deterioration of the global economic environment and a sharp worsening in the international financial market sentiment. Hence, the European governments adopted extraordinary monetary and state aid policies to mitigate the economic collapse and stabilise the financial markets. Romania was no exception, being significantly affected by the pandemic. Against this background, the paper aims to analyse the peculiarities of the monetary support and state aid adopted by Romania and by other EU Member States in the context of the pandemic crisis to increase the resilience of their national economies. Our main findings reveal that the monetary support provided in Romania consisted in significant liquidity injections into the financial system, and in the purchase of state securities from the secondary market. In Romania, the largest part of the total state aid was directed to SMEs from the processing industry, constructions, wholesale and retail trade, transport, and the storage sector, especially through guarantees and direct grants. [ABSTRACT FROM AUTHOR]
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Database: Complementary Index
Description
Abstract:The COVID-19 pandemic has rapidly led to a severe deterioration of the global economic environment and a sharp worsening in the international financial market sentiment. Hence, the European governments adopted extraordinary monetary and state aid policies to mitigate the economic collapse and stabilise the financial markets. Romania was no exception, being significantly affected by the pandemic. Against this background, the paper aims to analyse the peculiarities of the monetary support and state aid adopted by Romania and by other EU Member States in the context of the pandemic crisis to increase the resilience of their national economies. Our main findings reveal that the monetary support provided in Romania consisted in significant liquidity injections into the financial system, and in the purchase of state securities from the secondary market. In Romania, the largest part of the total state aid was directed to SMEs from the processing industry, constructions, wholesale and retail trade, transport, and the storage sector, especially through guarantees and direct grants. [ABSTRACT FROM AUTHOR]
ISSN:15828271