Romania could become the second agricultural power in Europe after France if it invests the funds alloted to agriculture in an "intelligent" manner, Prime Minister Calin Popescu Tariceanu said.
- Publicitate -
Tariceanu deems the country's Savings Bank (CEC) will play a significant role in easing access to funds because it has the widest network in the rural areas. Tariceanu was in Bacau County, Eastern Romania, where he released the "Solicitor's Guide".
CEC is the country’s oldest state-owned lender and one of the few left unsold. The government decided to stop the privatization in the lack of a really good offer and use the bank for distributing the European funds, Tariceanu said.
CEC plans to give 20 percent of the financing for rural areas by 2011, president of the bank, Radu Gratian Ghetea said at the beginning of the month.
CEC gave 12 percent of the total credits for the rural areas at the end of 2007. CEC has the widest network in Romania with more than 1,400 branches and agencies.
The volume of credits given by CEC reached 4.89 billion lei (1.453 billion euros) at the end of last year, a 53 percent hike from the year before. Of the total volume, 3.7 billion lei represented loans to individuals.
The interest rates will most likely be cut down to make financing easier for people in the rural areas, Ghetea said.
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