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Farmers propose to solve the problem of debts by factoring

More than 8 billion lei may be freed up to finance agriculture by applying the government factoring mechanism," Logos Press reported.
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Farmers propose to solve the problem of debts by factoring

Alexandru Bădărău

This option is promoted by Alexandru Bădăreu, director of the Forța Fermierilor Association.

It should be noted that government factoring involves financing against the assignment of the right to claim payment under a contract.

According to the Forța Fermierilor management, in the current crisis, it is possible to use the mechanism of crediting agricultural producers and farmers’ settlements with suppliers through the assignment of the right to receive debts due to agrarians for state subsidies and VAT refunds.

Alexandru Bădărău proposed to Prime Minister Dorin Receanu to develop and launch the government factoring mechanism back when he held the position of advisor for agriculture at the Cabinet of Ministers. At that time, the idea was ignored. Now the Forța Fermierilor Association has put it on the public agenda.


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