Romanian Environment Minister: Cash-for-Bangers program to re-start this April, under different name, with possible extra bonuses

Romania’s Cash-for-Bangers (Rabla) program will re-start this year on April 15, possibly under a different name, according to the Romanian Environment Minister Rovana Plumb. “The name of the program will not be Rabla anymore. We consider granting additional bonuses, but we are going to communicate them at the right moment, said Rovana Plumb. She added the ministry is taking into account support for the acquisition of an electric car, for both individuals and corporations, of some EUR 2,500 per car purchased, as well as giving bonuses under this new program for car fleet renewal, in order to reduce carbon dioxide emissions in Romania. The Romanian Cash-for-Bangers program allows people who own old cars to scrap the vehicle, receiving in exchange a voucher that can be used when buying a new car. According to the Romanian Environment minister, the scrapping premium this year will increase to EUR 1,500 from RON 3,800 (around EUR 900 at the average exchange rate in 2010) and people will be able to use only one voucher when buying a new car. From 2010, one person could use up to three vouchers when purchasing a new car. Over 189,000 cars were scrapped in 2010 and some 60,000 new cars were purchased using the vouchers. Only 32,000 cars entered the Cash-for-Bangers program in 2009. Irina Popescu, irina.popescu@romania-insider.com