Romania's Government will soon launch Agri Invest, a program under which the farmers and the small firms in the food industry will get state guarantees loans, subsidies to cover the interest, and up to 10% of their investments subsidized, prime minister Florin Citu confirmed, quoted by Economica.net.

The Government will initially set the ceiling for the total volume of loans to be guaranteed under the program at RON 1 billion (EUR 200 mln).

But the authorities can increase the ceiling later - as was the case with the similar program IMM Invest dedicated to small and medium-sized enterprises in general, PM Citu assured.

He admitted that IMM Invest proved not to be appropriate for farmers and the food industry; therefore, a new program (Agri Invest) had to be tailored for this sector.

The Agri Invest program beneficiaries will have their bank loans guaranteed by the state (which will cover the guarantee fee), and up to 10% of their investments will be covered by a state aid (grant), within limits specified by EU regulations: projects under EUR 120,000 for the fishery, under EUR 100,000 for producers of primary agricultural goods and under EUR 800,000 for SMEs in the agri industry.

The IMM Invest program, with a limit for the loans guaranteed by the state of RON 30 bln (EUR 6 bln), has a remaining budget of RON 7.2 bln, according to a notification issued at the end of 2020 by the body that manages the scheme (FNGCIMM). The program was extended by mid-2021.

The program's continuation, including the payment of the guarantee fees and interest for the loans covered, has to be approved every year or even more frequently as it generates additional costs to the state budget. 

(Photo: Andres Oliveira/ Dreamstime)

andrei@romania-insider.com