Public funding of 14m lei for stimulating lending to farmers

A sum of 14 million lei of the 300 million lei earmarked in the 2010 state budget for subsidizing farmers will be used to stimulate lending to them, Minister of Agriculture and Food Industry Valeriu Cosarciuc said, quoted by Info-Prim Neo. The financial assistance will be given to the agricultural producers that took out bank loans in 2010. The size of the subsidy will depend on the value of the main sum that must be repaid (without interest) this year. The maximum value will not exceed 85,000 lei and will not be higher than the interest paid on the subsidized loan, the minister said. The applications for subsidies can be filed between March 1 and December 20. “We hope the producers will appreciate this support as they need cheaper financing in this period of crisis,” Valeriu Cosarciuc said. Besides the 14 million lei, 10 million lei will be used for insurance against risks in agriculture. 60 million lei will go to stimulate investments, while by 10 million lei to buy animals and cover irrigation costs. The debts of 50.5 million lei for supporting the planting of vineyards and of 8.5 million lei for subsidizing the users of phytosanitary products and fertilizers collected in 2009 will be cleared. 135 million lei will be used to subsidize the farmers that supply agricultural products on the home market.