Farmers in Romania will be able to benefit from state grants of a maximum of 280,000 euros each, to cover the interest on bank loans, through an aid scheme proposed, on Friday, by the Ministry of Agriculture, through an emergency ordinance project.

The Farmer's Credit state aid scheme, initiated in the context of the crisis caused by Russia's aggression against Ukraine, provides a total budget of 815.5 million lei (164.1 million euros), from which it is estimated that 3,500 farmers in Romania will receive support for working capital.

State aid is proposed in the form of a grant that covers the interest component representing the 3-month ROBOR part, granted for a maximum period of 60 months.

The aid cannot exceed the equivalent in lei of 280,000 euros/beneficiary.

Eligibility conditions:

Beneficiaries will be economic operators operating in the primary agricultural production sector.

From a legal point of view, farmers must be organized under one of the following legal forms: companies, agricultural associations and agricultural companies, cooperatives, authorized natural persons, individual and family businesses, farmers' associations.

Credit conditions:

Credit institutions enrolled in the program will grant beneficiaries, in accordance with their own lending rules in force, non-revolving credits for working capital financing, for a maximum period of 60 months, without the possibility of extension.

An early repayment fee is NOT charged for these, and the credit agreement cannot contain clauses that allow it to be unilaterally modified by the credit institution.

The interest rate is the interest rate consisting of the 3-month ROBOR plus a maximum margin of 1.95% per annum. The margin also includes the total level of commissions charged by the credit institution at all stages of lending. The margin does not include the fees related to operations related to the lending activity, such as: notary fees, costs related to the evaluation and registration of guarantees and the like.

The interest rate is borne as follows:

the part representing ROBOR at 3 months by the state budget, through the budget of the Ministry of Agriculture and Rural Development;

maximum margin of 1.95% per year by the credit beneficiary.

Credit institutions are obliged to maintain the conditions provided by the program for the entire duration of the contracts concluded under the terms of this scheme.

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