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September 23, 2020

Up to 80 pct state guarantees for land purchase by Romanian farmers

Romanian farmers will be eligible for state guarantees of up to 80 pct for the purchase of land, as well as for reduced interest and guarantee fees, according to the legislative changes planned for 2017 aimed at improving the Romanian farmers’ access to financing.

Minister of Agriculture Petre Daea met on Wednesday with commercial bank representatives to identify the best solutions to contribute to the financing and development of agriculture in the coming period, the Ministry of Agriculture and Rural Development (MARD) informed in a release.

According to the cited source, the minister presented the bankers a draft normative that has been posted for public debate on the ministry’s website, arguing that the act sets the necessary legal framework in place for the development and facilitation of the access to financing for farmers, beneficiaries of the 2014-2020 NRDP and of the 2014-2020 Fisheries and Maritime Affairs Operational Program, for the purchase of agricultural land and the development of business for plant production, livestock and aquaculture, for the increase of the output for the domestic and foreign market and of produce quality.

Thus, state guarantees for the purchase of land can be as high as 80 percent of the loan and the difference is secured with the land itself, while guarantees for the loans for specific investments in agriculture can go as high as 3 million euro.

Land purchase loans for a period of 10 or 15 years will also be granted for an interest of ROBOR plus 2 pct, while the commission charged by the Rural Credit Guarantee Fund will be cut from 3.8 pct to 2 pct.

Not in the last place, working capital loans get 80 percent state-guarantee and 20 pct other guarantees, according to bank conditions.

According to the Ministry, the project will go through all the legal validation stages.

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