Brussels, 10 February 2010
Romanian subsidized loan scheme for farmers authorised
The European Commission has recently authorised a Romanian scheme with a budget of RON 120 million (around € 30 million) which aims at helping farmers encountering difficulties as a result of the current economic crisis to have access to credit. Aid under this scheme is limited in time and takes the form of subsidized loans. This scheme is an application of the Commission's Temporary Framework for businesses' access to finance during the crisis adopted in December 2010 (see IP/10/1636).
The scheme is open to farmers active in the primary agricultural production, provided they are not in difficulty. It is limited in time, as aid can be granted for loan contracts signed by 31 December 2011 and covers interest paid until 31 December 2013.
The Romanian scheme meets all the conditions of the Temporary Crisis Framework adopted in December 2010. In particular, the Romanian authorities demonstrated that it is necessary, proportional and appropriate to remedy a serious disturbance in the economy. Moreover, the calculation method of the aid element is compatible with the provisions of the Temporary framework. The Commission therefore considered that the scheme can be approved under Article 107(3)(b) of the Treaty on the Functioning of the European Union.
The full text of the Commission decision will be published in the State Aid Register on DG Competition’s website under the reference number SA 31 478 (N 372/2010).