Gov’t adopts decision to guarantee production credits

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The gov’t has adopted a decision to guarantee the production credits relying on public financing, with this being ‘the first measure taken in the advantage of the farmers’, according to what the Minister of Agriculture Mihail Dumitru stated.

‘The farmers could obtain guarantees for production credits of up to 80 percent of the total value of the loan, with the maximum value of a guarantee that could be obtained to stand at 2.5 million euros. The Minister of Agriculture have already put at the disposal of the Guarantee Fund financial resources worth 250 million lei, which the Fund is expected to multiply five times. In 2010, the Fund will be supplemented with 86 million lei, so that the possibility to guarantee to grow’, Mihail Dumitru said in the end of the government meeting.

He also specified that, on January 4, the Minister of Agriculture and Rural Development would launch a guarantee scheme to back up investments in this field.
‘The scheme will be fueled with European funds, with a tender to select the questionnaire for this guarantees scheme to follow soon, so that the beneficiaries of European funds to be able to obtain guarantees for their credits contracted for co-financing. We want this facility to be available somewhere in April 2010′, the Minister said.

According to him, starting on January 1, 2010, certain forms of aids that were not in compliance with the European norms on competition and state aid will have to disappear or to be replaced by other forms to meet the norms.
Mihail Dumitru gave as an example the subsidies for the water to be used in irrigations or for the pork and poultry meat, as well as such subsidies for the cattle and sheep breeders.

‘The farmers won’t lose their aids. They have benefited every year of the funds from the EU in per hectare payments, which grow by 10 percent on an annual basis. In the interval ahead, we will have to become able to negotiate with the European Commission. Besides the support from the EU and the nation aids we give to supplement them, every year, compensatory payments’, Dumitru also said.

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