Sp. Libanos: Banks need to develop new financial tools to support farmers

The banks must develop new financial tools to support the agricultural economy, stressed at a ETHEAS event in Agrinio, the Minister of Rural Development and Food Mr. Spilios Libanos, expressing, at the same time, his support, but also the support of the government in the cooperative and cooperative movement.

“I strongly believe in cooperation and healthy cooperatives for the rural area. Collective agricultural schemes can contribute substantially and in the long run to the reconstruction of the agricultural sector and the change of the productive model of our country. Through achieving economies of scale, promoting innovation the use of technology, lead to an increase in the added value of products and, ultimately, to an improvement in agricultural income.

That is why, after all, the strengthening of the spirit of cooperation and the creation of strong and healthy cooperatives is a clear priority of the Government of Kyriakos Mitsotakis “, stressed the Ministry of Regional Development, noting that the support to the cooperative movement is done by deeds and not by words. reminded that:

– We apply the measure of the return of the Special Oil Consumption Tax for 2022, for the farmers who participate in producer groups, in cooperatives, in the contract farming program (and for young farmers).

– We reduced the tax to 10% of the profits of the collective schemes.

On the occasion of the presence of Piraeus Bank executives at the event, Mr. Libanos again called on the banks to show confidence in the agricultural sector and the rural world and urged them to promote even more financial tools targeted at the agricultural sector. Because, as he characteristically said “we must all together make the primary sector a protagonist of growth in the new era. Because only then will we all win. A strong agricultural sector means a strong economy, it means a strong society”.

Referring to Piraeus Bank, he said that it helps to make the space more technocratic and to create new investments. As he said, this will create wealth. And when wealth is created, wealth is also created for producers, with the result that the primary sector and agricultural entrepreneurship are strengthened.

In this effort, Mr. Libanos estimates, the role of ETHEAS is catalytic.

The Minister of Rural Development and Food also expressed his support for the interprofessional organizations, while, as he noted, within the framework of the Recovery Fund, the government provides incentives for collaborations and cooperative schemes aimed at innovation and extroversion.

In total, as he said, within the framework of the Recovery Fund we are expected to mobilize at least 2 billion euros to support the primary sector.

These include:

– EUR 670 million for the Economic Transformation of the Rural Sector, of which:

EUR 100 million for the modernization of the primary sector

– EUR 100 million for green agro-tourism

EUR 217 million for crop restructuring

EUR 18 million for the genetic improvement of animals and

– EUR 235 million for innovation and green transition to agricultural processing.

The same program, as Mr. Libanos said, includes,

– EUR 70 million for Aquaculture

– 47 million euros for the Digital Transformation of Agro-food

– 1 billion euros for the National Irrigation Network

At the same time, Mr. Libanos referred to the irrigation project “Water 2.0”, the largest, as he noted, integrated irrigation project ever done in Greece.

A total of 21 construction projects are included, with a cost of 1.6 billion euros and a total cost (operation and construction) in a depth of 25 years that exceeds 4 billion euros.

For the implementation of this huge program, in addition to the Recovery Fund, resources of the Rural Development Program (RDP) and money from the National Public Investment Program will be used, while private resources will be mobilized, from individuals who participate in borrowing.

Mr. Lebanon’s assessment is that the Recovery Fund, which characterized the new Marshall Plan, will be one of the most important tools we have to achieve the required transformation of our productive model and the healing of the wounds from the pandemic. Together with the CAP of 19.3 billion, they constitute, as he said, the two main financial instruments of Greece, for the redefinition of the agricultural sector and its transition to the new era to a more sustainable, green, digital, innovative, cooperative and renewed.

“We have a plan, we have a strategy and a vision to return Greece to a dynamic development trajectory, with the primary sector in a leading role and for Greek women and farmers to find the place they deserve,” Mr. Libanos concluded.