Hope on the credits

With a budget in a value of 11.6 Million Euros dedicated to agriculture, ore 500 thousand Euro less than the previous year, cannot be filled the requirements of farmers for subsidies.

This is too clear also for the Ministry of Agriculture, Forestry and Rural Development, which despite the effort to help the farmers with budget restrictions, believes that taking loans from the international financial institutions is much better.

The officials of the ministry said that they are in negotiations with the World Bank for a credit in a value of 10 million Euros.

Njazi Idrizi, advisor in the Ministry of Agriculture, said that from this amount, 45 percent will be distributed in the form of grants to farmers, while 55 percent will be given as loans with 10-year grace period.

 "These days the World Bank delegation is staying in Kosova and are in talks for several projects and the possibility of receiving this loan," said Idrizi.

Although the loan it is as much as it is the ministry's budget this year, Idrizi also says that this loan will have a more symbolic character of investments.

However, this loan, according to him, would have more favorable terms than those provided by commercial banks in Kosova. Investments made by commercial loans are made under the pressure of returning to high interest rates.

"Interest rates from our banks in any case have been over 10 percent of the loan that had to return almost immediately," he added.

However, as for the officials of the Ministry successes of these investments leave much to be desired. Despite this, if eventually this loan will be given, priority will be an investment in primary production and agroculture.

"To supplement the needs of food, Kosova lost several hundred millions Euros issued abroad, even though we have good agriculture and favorable conditions for production of most products," stated Idrizi.

According to the World Bank study, only Kosova in 2006 has issued abroad about 300 million Euros.

On the other hand, cognitive economy warns that this year could easily be replicated a bloodcurdling scenes when the milk producers had spilled the milk as a sign of revolt against government policies.

However the Ministry of Agriculture in the budget has 500 thousand Euros more than the previous year, problems were also shown by the producers of wheat, demanding subsidies and disappointed farmers would close their farms.

Imer Rusinovci, professor at the Faculty of Agriculture, says that although it comes to symbolic tools, loan of 10 million Euros is a good thing if is used properly.

"It is needed professionalism to split some priorities to be financed by this loan," said Rusinovci.

Otherwise, experts say that it should not be left only to the Ministry of Agriculture alone in Showdown with all these problems accumulated. They seek the support of other departments, such as the Ministry of Finance.

 Source:gazetaexpress.com/9 March 2010