BCR offers agricultural loans in anticipation of subsidies

The Romanian Commercial Bank (BCR) is offering agricultural loans in anticipation of subsidies to be made available by the European Union, the bank announced yesterday.

BCR has signed a convention with the the Agricultural Payments and Interventions Agency (APIA) and the Rural Credit Guarantee Fund (FGCR). Financial support is given to Romanian farmers through the single payment on surface scheme (SAPS), regulated through the Joint Agricultural Policy through complementary direct national payment schemes, financed by the state budget.

The loans will cover up to 75 percent of the estimated amount made available by APIA, calculated on the basis of a document provided by APIA which certifies that the surface is owned by the farmer. Furthermore, BCR and FGCR have signed an agreement on the limit guarantee, with FCGR guaranteeing 50 percent of the value of each loan.

Other banks, including Casa de Economii si Consemnatiuni (CEC), Banca Romana de Dezvoltare-Societe Generale (BRD-SocGen) and Alpha Bank, have already signed agreements with APIA, and will also make agricultural loans available. A total of three banks could provide such loans worth some €200 million, until farmers receive their state subsidies in June.

The credit instrument, perfected by APIA, FGCR and the three banks, gives farmers the possibility of obtaining loans in preferential conditions.

Radu Ghetea, President of CEC, says that the battle for agriculture and small and medium-sized enterprise financing has begun. He added that many banks will offer low interest loans.