Financial instruments for agriculture, such as guarantee funds, were a failure between 2007-2013.

Romania approved projects worth EUR 700 million, but they stayed only on the paper, due to the lack of co-financing or insufficient guarantees, according to a report from the European Court of Auditors. The lack of co-financing accounts for 69% of the failures.

“Due to structural factors, including the banks’ lack of interest or the absence of credit history, despite the existence of a financial instrument, the deficit has persisted,” reads the report, cited by local Economica.net.

However, the Romanian state has won EUR 50 million from interest rates with the money that it should have used for guarantees.

editor@romania-insider.com