OTP Bank Romania pre-finances subsidies for local farmers, granting based on a unique banking product, up to 160% of the value of surface subsidies and estimates for this year an increase in the need for financing for local agriculture, affected by drought.
The financing request for APIA SAPS subsidies is considerable compared to last year’s volume, and farmers are either looking to finish work that could save crops, or are already finishing sowing spring crops to replace the affected autumn crops.
“This year’s drought has changed the need for funding, and the increase in the number of applications is obvious. Starting the APIA SAPS program has been crucial and we see that many farmers, with whom we have been working for many years, now need more support than before. The economic context is already difficult and that is why we are looking to provide the necessary financing to support local agriculture through products such as the APIA SAPS double pre-financing loan, through which farmers can benefit in advance from a maximum of 160% of the subsidy. It is a strategic area, in which we have confidence, which we have supported for some time and in which we invest in the long term”, said Roxana Hidan, Deputy General Manager, Retail Division, OTP Bank.
Through this facility, customers in the agricultural field can benefit in advance from a maximum of 160% of the APIA SAPS subsidy, respectively: 80% of the amount of the subsidy due in the first year of financing, and 80% of the level of the subsidy for the following year.
Interest may be paid monthly, quarterly or annually, depending on the customer’s financial priorities.
Financing granted based on the agreements concluded with APIA and the Guarantee Funds has an advantageous cost structure, established from the moment of their signing.
OTP Bank also offers farmers the simple pre-financing product, which, based on the APIA certificate, can finance a maximum of 85% of the amount due from SAPS, including redistributive payment, greening payment and compensatory measures.
In 2020, the Agricultural Payments and Intervention Agency started the process of signing agreements with local banks more than a month in advance, and during the state of emergency a fast and secure online work process was implemented, whereby the documents of each beneficiary are sent directly to the bank.