The new provisions will significantly improve the provision of guarantees and access to finance for those performers of economic activity under the rules who do not have sufficient collateral for financing in commercial banks.
The new rules lay down the modalities for the implementation of the program for guaranteeing agriculture, fisheries and rural development measures, financing, eligibility conditions and eligibility of costs.
Under the new rules, the maximum total amount of guarantees to be provided to one performer of economic activity is increased. In the future, it will be able to reach EUR 1 million, without the existing restrictions on certain groups of beneficiaries. The amount of existing guarantees for eligible agricultural service cooperatives and corresponding forestry service companies will be EUR 3.5 million and EUR 2 million respectively, while respecting the limits of State support to large performers of economic activity.
In the future, regardless of the type of loan and the measure to be supported, the guarantee will cover up to 80 percent of the financial service amount not only for loans for investment and working capital, but also for financial leasing and financial leasing limit, factoring, bank guarantee limit and credit letter. The new rules are expected to improve access to finance for performers of economic activity and reduce administrative burdens, thereby providing accelerated delivery times for economic operators in agriculture, processing of agricultural products, rural areas, fisheries and forestry. The introduction of the new rules is expected to contribute to the issuance of new guarantees of about EUR 10 million.
Source:The Ministry of Agriculture