1. Rural Credit Guarantee Schemes workshop Budapest, January 13, 2006 IMPLEMENTATION AND ACHIEVEMENTS

2. 1. 1. Improvement of access on market and competitiveness for agricultural and fishery products 2. Improvement of infrastructure for rural development and agriculture 3. Development of rural economy 4. Development of human resources Programme Priorities

3. SAPARD Measures subject to implementation  Measure 1.1Improvement of processing and marketing of agricultural and fishery products  Measure 1.1– Improvement of processing and marketing of agricultural and fishery products  Measure 3.1 – Investments in agricultural holdings  Measure 3.4 – Development and diversification of economic activities, providing for multiple activities and alternative income  Measure 2.1 – Development and improvement of the rural infrastructure  Measure 4.1 –Improvement of vocational training  Measure 4.2 – Technical assistance

4. Measure 1.1 – Improvement of processing and marketing of agricultural and fishery products Funds allotted for 2000-2006: EUR 325.2 mn

5. Trading companies with at least 75% private capital; Wine making associations, groups of producers and private trading companies, processing only noble variety of grapes Consumption co-operatives Eligible value / project 30,000 – 4,000,000 EURO Measure 1.1 BENEFICIARIES

6. agricultural and fishery products  Improvement and optimization of production, processing and marketing flow for agricultural and fishery products; local collecting nets  Setting up or modernization of local collecting nets, taking delivery, storage, conditioning, sorting and packing capacities; national standards improvement Milk and dairy produce; Meat (beef, pork, mutton, fowl) and eggs; Vegetables, fruits and potatoes; Wine; Fish and fishery products; including oyster culture products (oysters and mussels); Cereals; Oil- bearing seeds; Sugar and Textile plants.  Investments determining the national standards improvement by gradual adjustment to the European standards in the following sectors: Milk and dairy produce; Meat (beef, pork, mutton, fowl) and eggs; Vegetables, fruits and potatoes; Wine; Fish and fishery products; including oyster culture products (oysters and mussels); Cereals; Oil- bearing seeds; Sugar and Textile plants. Measure 1.1 ELIGIBLE INVESTMENTS

7. Measure 3.1 – Investments in agricultural holdings Funds allotted for 2002 – 2006: EUR 260.88 mn

8. Measure 3.1 – Agricultural individual producers – Agricultural family associations – Agricultural companies/private companies with legal personality – Trading companies with at least 75% private capital – Consumption Cooperatives Eligible value / project EUR 5,000 - 500,000; for animal breeding farms EUR 5,000 - 2,000,000 BENEFICIARIES

9. holdings in plant and livestock sector - Endowment of the holdings in plant and livestock sector with tractors, combines, equipment, machines, installations, agricultural equipment and irrigation installations; fruit growing plantations and vineyards - Modernization and setting up of fruit growing plantations and vineyards (including the purchase of planting material); buildings and utilities - Modernization and extension of buildings and utilities (water and power supply, thermal energy supply, waste draining off, sorting spaces, etc.); new greenhouses - Modernization or building up of new greenhouses with own thermal units and irrigation installations, including provision of utilities; high genetic potential and seminal material - Purchase of animals with high genetic potential and seminal material; micro-farms and farms for animal and poultry breeding - Setting up and modernization of micro-farms and farms for animal and poultry breeding with utilities and other buildings (paddocks, hay storehouses, etc.) Eligible sectors: Vegetal production farms and animal and poultry breeding farms Measure 3.1 ELIGIBLE INVESTMENTS

10. Co-finance of the project is Co-finance of the project is : For projects achieved in any regions, excepting the mountain area: 50% private contribution, 50% public contribution For projects to be achieved by persons up to 40 years old, in any regions, excepting the mountain area: 45% private contribution, 55% public contribution For projects in the mountain area 40% private contribution, 60% public contribution For projects to be achieved by persons up to 40 years old, in the mountain area 35% private contribution, 65% public contribution

11. Measure 3.4 – Development and diversification of economic activities, providing for multiple activities and alternative income Funds allotted for 2002-2006: EUR 150.32 mn

12. Measure 3.4 - Natural persons - Family associations, associations and groups of producers - Non profit organisations named “Agricultural machine rings” created on voluntary basis in order to protect the individual farmers - Companies having at least 75% private capital - Consumption cooperatives Eligible value / project EUR 5,000 - 200,000 EURO, for Aquaculture EUR 5,000 - 500,000 EUR 5,000 - 200,000 EURO, for Aquaculture EUR 5,000 - 500,000 BENEFICIARIES

13. agriculture machines and equipment -Purchase of agriculture machines and equipment and building up or modernisation of overhaul and maintenance spaces; rural tourist pensions - Building, modernisation and endowment of rural tourist pensions with: -Comfort and quality level of minimum 3 flowers; -Minimum 4 rooms (8 beds) and maximum 10 rooms (30 beds) for new investments and maximum 20 rooms (60 beds) for modernization; leisure field -Development of services in the leisure field (camping areas, sports and entertainment grounds, horsemanship, mountain bicycling, etc) Mountain tourism - Mountain tourism, tourism for fishing, equastrian tourism, bicycling tourism, farms breeding game in semi-freedom for hunting parks and other related activities. Measure 3.4 ELIGIBLE INVESTMENTS

14. handicraft units -Setting up or extension of handicraft units carrying on wood processing, handicraft things and ceramics manufacture, tailoring, embroidering, knitwear, leather, bulrush and osier processing, musical instruments manufacture; aquaculture farms -Building up and modernisation of aquaculture farms and investments made for mechanisation of fodder, harvest, storage, processing and marketing within the farm; farms for snails and frogs breeding -Building up and modernisation of farms for snails and frogs breeding, as well as the storage and processing units; farms for silk worms breeding sericulture -Building up and modernisation of farms for silk worms breeding, of processing and storage units, as well as the plantation of mulberry trees for sericulture; Measure 3.4 ELIGIBLE INVESTMENTS

15. bee-keeping -Setting up and modernisation of bee farms and processing and storage units for bee-keeping; mushroom crop mushroom farms -Purchase of biological material for setting up mushroom crop and setting up and modernisation of mushroom farms, including storage, refrigerating and processing units; fruit berriesmedicinal and aromatic plants. -New investments and modernisation of collection, storage, refrigerating, processing and marketing for fruit berries and medicinal and aromatic plants. Eligible sectors: Agricultural services (NGO), Rural tourism, Handicrafts, Aquaculture, Sericulture, Bee-keeping, Snails and frogs breeding, Mushrooms, Fruit berries, Medicinal and aromatic plants processing. Measure 3.4 ELIGIBLE INVESTMENTS

16. Measure 2.1 - Development and Improvement of Rural Infrastructure Funds allotted for 2000 – 2006: EUR 515.15 mn

17. Measure 4.1 Improvement of Vocational Training Funds allotted for 2002-2006: EUR 21.05 mn Beneficiary Ministry of Agriculture, Forests and Rural Development Scope Vocational training services provided for farmers by means of vocational courses

18. Measure 4.2 Technical Assistance Funds allotted for 2000-2006: EUR 5.83 mn Beneficiary Ministry of Agriculture, Forests and Rural Development Scope Provision of technical assistance for SAPARD Programme implementation, for the organisation of Monitoring Committees, of the information and advertising campaigns, the preparation of the measures provided by the National Programme for Agriculture and Rural Development and for the intermediary evaluation of the Programme.

19. SAPARD Measures to be approved   Measure 1.2 – Improvement of the structures for quality, veterinary and phyto-sanitary controls for the quality of food products and for consumer protection   Measure 3.2 – Setting up of producer groups   Measure 3.3 - Agricultural production methods designed to protect the environment and maintain the countryside   Measure 3.5 - Forestry

20. SAPARD PROGRAMME STAGE 1. Employment of funds allotted during 2000 – 2006, by 9 January 2006 EUR mn Measure (1) Funds allotted during 2000 - 2006 (2) Contracted amount (3) Commitment degree (4)=(3)x100/(2) Payments made (5) Employment degree (6)=(5)x100/(2) Measure 1.1 325.50143.8144.18%60.8718.70% Measure 2.1 515.15477.0792.60%339.5565.91% Measure 3.1 260.8857.2321.94%28.8211.05% Measure 3.4 150.3227.7318.45%5.113.40% Measure 4.2 5.831.6428.13%0.6711.49% Measure 4.1 21.054.9523.51%00% TOTAL1,278.73712.4355.71%435.0234.01%

21. 2. Approved and made payments (EUR mn) Measure (1) Total allotted funds 2000 – 2004 (2) Approved payments by 09 January 2006 (3) Payments made by 09 January 2006 (4) Employment degree for the funds allotted during 2000 - 2004 (5)=(4)x100/(2) Measure 1.1204.8161.1060.8729.72% Measure 2.1* (total allotted funds for 2000-2006) 515.15340.25339.5565.91% Measure 3.1157.4429.1028.8218.31% Measure 3.492.175.195.115.54% Measure 4.24.310.67 15.55% Measure 4.112.56000% TOTAL986.44436.31435.0244.10%

22. 3. Terminated projects 381 projects of the Measure 2.1 “Development and Improvement of Rural Infrastructure” have been terminated, from which: 215 projects for sub-measure “Roads” 145 projects for sub-measure “Water supply” 21 projects for sub-measure “Sewerage”. 82 contracts of Measure 1.1 “Improvement of processing and marketing of agricultural and fishery products” were terminated, from which: 25 projects for sub-measure “Milk and dairy produce” 37 projects for sub-measure “Meat and meat products” 5 projects for sub-measure “Vegetables, fruits and potatoes” 1 project for sub-measure “Fish and fishery products” 7 projects for sub-measure “Cereals” 7 projects for sub-measure “Wine”

23. 147 contract of the Measure 3.1 “Investments in agricultural holdings” were terminated, from which: 130 projects for sub-measure 1 “Field crops” 1 project for sub-measure 2 “Horticulture” 1 project for sub-measure 4 “Fruit-growing” 1 project for sub-measure 5 “Greenhouses” 7 projects for sub-measure 6 “Livestock for milk production” 1 project for sub-measure 7 “Bovine breeding” 1 project for sub-measure 8 “Sheep breeding” 1 project for sub-measure 9 “Ram breeding” 1 project for sub-measure 10 “Pig breeding” 3 projects for sub-measure 11”Poultry farms” 53 Contracts of the Measure 3.4 “Development and diversification of economic activities, providing for multiple activities and alternative income” were terminated, from which: 8 projects for sub-measure 2 “Rural tourism” 1 project for sub-measure 3 “Other tourism activities in rural area” 1 project for sub-measure 4 “Handicrafts” 43 projects for sub-measure 6 “Other activities”