Projects for rural development receive 300 mln euro funds from the EIB

The European Investment Bank (EIB) announced it has concluded a loan agreement to provide 300 million euro financing for priority projects under the Romanian Rural Development Programme for 2007-2013. Main areas targeted are afforestation, improvement of forest management and protection and small-scale rural and agricultural infrastructure investments.

“The EIB loan will finance the upgrading of the environmental performance of more than 44,000 farms and improvement of the management of some 2,400 forestry holdings. It will also support erosion mitigation works on 60,000 ha as well as anti-flood measures in more than 1,000 communities, thereby reducing the risk of disasters such as the recent flooding in Southern Romania. Finally, it will also help to increase the absorption of EU funds in Romania as the EIB loan is backing the Romanian contribution to EU grant support”, explained Mihai Tanasescu, EIB Vice-President responsible for lending operations in Romania, according to a press release.

This initiative is promoted by Romania’s Ministry of Agriculture and Rural Development, the main beneficiaries being public and private entities, including small and medium-sized enterprises which are expected to run projects to generate employment in rural areas, increase the use of green energy sources (biogas and biomass) and reduce surface and groundwater pollution from animal husbandry.