Romanian Govt To Cover Difference Between Farming Loan Interest And EC Reference Rate

Romania’s Government will allot 103 million lei (EUR1=RON4.2368) until 2012 to cover the difference between the interest rate of loans taken out by farmers for production in 2010 and the reference rate announced monthly by the European Commission, Agriculture Minister Mihail Dumitru said Wednesday.

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The decision, taken Wednesday by the Government through an ordinance, targets contracts signed after the act is published in the Official Journal and before December 31, 2010, for loans of any length. The subsidy will be provided until December 31, 2012.

"At the moment, the average interest rate on the Romanian market is 18% for loans in RON and this month the EC's reference rate is 8%, meaning we will cover ten percentage points from the state budget," the minister explained.

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