The Ministry of Agriculture, Forestry and Water Supply will cover 50 percent of the interest rate for all loans provided to farmers for investments through the IPARD programme.

"Interest rates in commercial banks range between 4-8 percent and the profit in agriculture is insignificant. Through these subsidies, farmers will pay 2-4 percent interest rate, which believe they are able to pay", said Minister Mihail Cvetkov said Tuesday's press conference.

The third call for use of funds within the IPARD 1 programme worth EUR 29 million will be announced next week. It refers to funding of projects for construction of stock breeding farms, fruit and vine crops, procurement of equipment, irrigation systems, distribution centers, diaries, wineries etc.

"Co-funding of 75 percent from IPARD will be available to all applicants from municipalities hit by floods at the beginning of the year - Mogila, Novaci and Bosilovo - as well as farmers from all other municipalities who have applied for damages to the competent committee", said Cvetkov.

Taking into consideration that farmers do not have the money to pre-finance projects for which they later receive IPARD funds, a warranty fund has been established, which enables farmers to use bank funds, with 50 percent of the mortgage to be covered by the state, but only for projects up to 500,000. This fund is to become operational by October.

Minister Cvetkov said IPARD 1 agreements should be signed no later than August 2016, which is a prerequisite for the launch of the IPARD 2 programme.