Government Decision No. 184-L “On subsidization of interest rates on credits provided to the agricultural sector”.

This Government Decision primarily addresses the subsidy program for interest rates on loans provided to the agricultural sector, aiming to enhance access to financing for farmers and agricultural enterprises. It operates within the broader policy framework of supporting agricultural development, with explicit reference to legal and regulatory provisions. The overarching policy goal is to increase investment, productivity, and competitiveness in agriculture through targeted financial support mechanisms. Key measures include the approval and implementation of a subsidy program that partially covers interest rates on loans, with specific conditions such as maximum loan amounts, interest rate caps (up to 14%), and repayment terms (up to five years). The Program stipulates that loans are to be provided in the national currency, with no additional service charges, and details the eligibility criteria, including the exclusion of certain existing subsidy programs and specific beneficiary categories. The document emphasizes the importance of aligning the Program with existing financial and legal frameworks, and highlights the need for strategic planning to increase loan accessibility, especially for modern technological investments and farm expansion. Implementation mechanisms involve the allocation of budgetary funds annually, with a focus on monitoring and reporting. The Ministry of Agriculture, in cooperation with financial institutions and the Financial Credit Institution (GFK), is responsible for overseeing the Program's execution, including the submission of monthly and quarterly reports on loan disbursements, subsidies, and compliance. The document also discusses risk factors such as misallocation of funds and borrower defaults, and underscores the importance of transparent procedures, stakeholder involvement, and adherence to established timelines to ensure effective program delivery.