FINANCIAL INSTRUMENTS TO INCREASE INVESTMENT IN AGRICULTURE

After 2002 in Romania are made first steps to modernize farming and the countryside. The foundations of a coherent agricultural policy based on market economy principles, adapted to the European context. The national rural development programs, SAPARD by 2007 and RDNP by 2008, which are important EU funds allocated for investment projects in agriculture, were implemented. For efficient use of EU funds allocated, having regard to the plight of local agricultural capital and decreased appetite of the private financial banking system for financing in the agricultural sector, were succession created in a series of financial instruments to stimulate the modernization of agriculture. The complexity and diversity of these financial instruments requires the development of a work of synthesis. It was analyzed all relevant legislation, the legislative basis for financial instruments created, were statistically analyzed data collected from central and local institutions involved in developing European and national funds allocated. Were analyzed and described the credit and guarantee mechanisms created, positive and negative effects of the measures applied, the need for continued public support for new production capacities created or upgraded as a result of financial, credit or guarantee instruments studied. In conclusion the paper is an overview of all the public support measures implemented over five years in the pre and post EU accession of Romania, useful both for analysis and their subsequent effects on the development of future public support measures in agriculture.