Loading ...The Romanian Ministry of Agriculture and Rural Development will make certain changes to the Farmer programme in the period ahead, as the European Commission considers that the interest rate subsidy granted the farmers is state aid, Agriculture Minister Dacian Ciolos told a news conference on Nov. 13.
“We are considering to strengthen appendix two of the Farmer programme, which sets the possibility to fund projects that are not eligible for the National Rural Development Programme (NRDP), i.e. to back those investments that do not meet the NRDP requirements on certain priority sectors like milk, fruit and vegetables or grain”, Ciolos said.
The move gives the possibility to finance investment loans at a lower interest rate and to add the co-funding set by the current legislation on the Farmer programme that is not funded by the NRDP to reach 30% of the loan value.
Ciolos explained that the Farmer programme currently offers a lower interest rate than the market interest and it is seen by the European Commission as state aid.
Ciolos explained that the Farmer programme currently offers a lower interest rate than the market interest and it is seen by the European Commission as state aid.
“Under these circumstances, the difference between the market interest rate and the interest rate under the Farmer programme should be borne by the European Union’s public finance, namely 50%, therefore by cutting that co-funding. The European regulations say the support from the public funds should not be higher than the 50% level of the public co-funding in which all
the support funds should be included, the state aid too; as a result, there is no co-funding for certain loans granted for longer periods, up to 10 years”, the agriculture minister stressed.
the support funds should be included, the state aid too; as a result, there is no co-funding for certain loans granted for longer periods, up to 10 years”, the agriculture minister stressed.
The agriculture ministry has earmarked 350 million lei from its budget for the Farmer programme next year, while the amount assigned this year stands at 760 million lei.
The ministry began to implement the Farmer programme in 2006 so as to offer low-interest crediting to the investment projects under the SAPARD programme; the ministry made available financial resources to the banks to this effect.
The ministry began to implement the Farmer programme in 2006 so as to offer low-interest crediting to the investment projects under the SAPARD programme; the ministry made available financial resources to the banks to this effect.
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