APIA ANNOUNCES FIRST PAYMENTS FOR FINANCIAL YEAR 2008-2009: Funds For Vineyard Reconversion and Restructuring

The Agency for Agricultural Payments and Intervention (APIA) will make this week the first payments in the financial year 2008 - 2009 for the reconversion and restructuring of vineyards. The recipients will be winemakers interested in improving their vineyards based on a restructuring and reconversion plan. One condition is that the vineyards have to be registered with the Vineyard Registry.

APIA announced that 33 applications for a total of approximately 3 million EUR had been approved. The applications refer to works performed this autumn on 570 hectares. According to the applicable EU regulations, payments are made towards the applications submitted under reconversion - restructuring plans in different steps, as the works are performed.

APIA representatives explained: "Of the 33 approved applications, 16 refer to the plans submitted in the 2006-2007 season and are almost completed and six refer to intermediate works under the plans submitted also in the 2006-2007 season. Four applications refer to the plans submitted in the 2007-2008 season are have been completed and three applications refer to intermediate works under the plans submitted in the 2007-2008 season. Four applications have been submitted for intermediate works under the plans submitted in the 2008-2009 season."

"This year we have managed to fully spend the initial disbursement of 25 million EUR and the 10 million EUR supplement obtained by Romania," said Dan Gherghelas, General Director of APIA. "Helped by this financial assistance, winemakers managed to restructure their vineyards and start new vineyards of the varieties that are required for high quality wine, for both the domestic and the international market," Gherghelas added.

In order to be eligible for the financial assistance for restructuring and reconversion, the applicant needs to prepare and individual plan containing a single restructuring - reconversion plan consisting one or several eligible measures, APIA explained. The programs eligible for reconversion - restructuring are: vine variety reconversion by planting in the same plot or a different plot of equivalent surface, relocation of the vine to better soil and/or in better climate and certain technological upgrades.