Romanian farmers can now access agricultural subsidies in advance through CEC Bank credit, receiving up to five times the subsidy amount.
In a move to support Romanian farmers, CEC Bank has introduced the "Subsidy x5" credit program, enabling farmers to access their agricultural subsidies in advance. This innovative scheme allows farmers to receive up to five times the value of their annual APIA subsidy, providing them with a much-needed cash flow boost.
Eligibility Criteria
To qualify for the "Subsidy x5" credit, farmers must meet the following criteria:
Manage a farm with a minimum surface area of 5 hectares: This applies to individual agricultural producers.
Have a history of at least three years receiving APIA subsidies or financing: This demonstrates a track record of responsible farming practices.
Be beneficiaries of APIA payments: This ensures that the credit is utilized for its intended purpose.
Program Benefits
The "Subsidy x5" credit program offers several advantages to Romanian farmers:
Access to substantial funds: Farmers can borrow up to five times the value of their annual APIA subsidy,providing them with significant financial resources.
Flexible repayment terms: The credit is granted in lei over a period of up to five years, allowing farmers to manage their repayments effectively.
Competitive interest rates: The interest rate is calculated based on ROBOR 6 months plus a margin of 2%,ensuring affordability.
How to Apply
Farmers interested in the "Subsidy x5" credit can apply through CEC Bank branches nationwide. The application process involves:
Submitting an APIA certificate for the current year: This verifies the farmer's eligibility for subsidies.
Obtaining FGCR guarantee: The FGCR guarantee covers up to 80% of the loan value, mitigating risk for both the bank and the farmer.
Ceding APIA claims for the current and future agricultural years: This ensures that the loan is repaid from the subsidy proceeds.
Establishing a mortgage on current and future bank accounts: This serves as additional collateral for the loan.
Signing a fideiussin contract: This involves a third party guaranteeing the loan repayment.
Additional Information:
Loan fees: A 0.75% loan origination fee and a 3% refinancing fee apply.
Collateral: The loan is secured by the FGCR guarantee and the mortgage on the farmer's bank accounts.
Documentation: Farmers will need to provide various documents, including their APIA certificate, financial statements, and property titles.
Related: Romania Pays Out Over 322 Million Lei to Support Pig and Poultry Farmers Amidst Ukraine Crisis
The "Subsidy x5" credit program from CEC Bank is a valuable initiative that empowers Romanian farmers to enhance their financial stability and invest in their agricultural operations. By providing timely access to funds, the program contributes to the overall growth and development of the Romanian agricultural sector.
Additional Tips for Romanian Farmers:
Plan your finances carefully: Determine your specific financial needs and how the credit can be utilized most effectively.
Compare interest rates and terms from different lenders: Ensure you are getting the best possible deal for your credit needs.
Meet with a financial advisor: Seek professional guidance to make informed financial decisions and optimize your credit utilization.
By taking advantage of the "Subsidy x5" credit program and following these additional tips, Romanian farmers can position themselves for continued success and contribute to the vibrancy of the country's agricultural sector.
Source: Capital.ro