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Romanian Farmers To Get State Guarantee Of Up To EUR2.5M For Loans
Romanian farmers can take bank loans with a state guarantee of up to EUR2.5 million, Agriculture Minister Mihail Dumitru said Tuesday after a Cabinet meeting, Mediafax report.
State guarantees will cover a maximum 80% of the contracted loan, he said, citing a government decision approved Tuesday and which sets the conditions in which farmers can get state-guaranteed loans.
The Agriculture Ministry has already assigned 250 million lei (EUR1=RON4.2099) to the Guarantee Fund to cover such loans and will assign an extra RON86 million next year. The minister said the Fund can give guarantees of up to RON1.25 billion.
Dumitru also said a scheme to guarantee investments in agriculture and rural development, using European funds, will be launched on January 4 and is to be applied as of April 2010. The ministry will also launch an auction then to select a scheme manager.
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He also reminded that, as of January 1, 2010, Romania is no longer allowed to subsidize irrigation water, the production of pork, poultry meat, eggs, sugar beet, rice, hemp, flax, soy, tobacco or diesel fuel used in farming and will have to seek alternate ways to help farmers.
Autor:
Dragos Serban
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