Substantial support for agriculture

TIRANE, Oct. 17- Minister of Agriculture, Food and Consumer Protection Jemin Gjana said that financing agricultural projects from the banking sector remains very problematic. The problem is the high risk associated to all investment initiatives of the agricultural sector.This induces the banks to offer high interest rates which are utterly inconvenient. In a speech to the media in Tirana, the minister said that he is negotiating with the Bank of Albania and second level banks to offer facilitated conditions in order to secure a financial support to this sector.
The minister counted state subsidies as one of the possible measures to cover part of the interest payments. Present loan rates to the sector have hit a high of 8%.
Mr. Gjana reported that the state budget allocation for the first phase of agricultural support is $ 3.5 million and that it will primarily assists the vineyard subsection
The directory of Agriculture has designed a strategy which includes soft loans to farms through agencies like the Rural Financial Fund. Another possible measure that will be considered is the creation of a Rural National Bankthat will contribute to the expansion of opportunities for the financial support of rural actors and generally in the lowering of poverty.