Loans can already be requested from this Wednesday until December 31

The Andalusian Government has opened two new lines of support for Andalusian olive oil producing companies, with the aim of providing them with liquidity, improving their business dimension, boosting export capacity and providing greater security and stability to their sales. Thus, the Board has given the green light on Tuesday to the creation of a reimbursable fund of 40 million to grant loans to these companies and tax deductions for projects of supply integration and marketing improvement- pop over to these guys Malaysiawm.

In the press conference after the meeting of the Governing Council, the Minister of Agriculture and Fisheries, Clara Aguilera, explained that the reimbursable fund of 40 million euros is aimed at alleviating the financing difficulties that the sector has been suffering in the last years. Deductions, a fiscal measure that has been approved by the Delegate Committee on Economic Affairs, are applicable to credit institutions in the Customer Deposit Tax when they allocate loans linked to supply integration and improvement of marketing channels.

According to Aguilera, the reimbursable fund will allow the granting of loans with the use of the own production of virgin and extra virgin olive oil as a guarantee. This line of support, announced by President José Antonio Griñán in the last debate on the State of the Community, will be part of the Support Fund for Agrifood SMEs that the Andalusian Government set up in 2009.

The producing companies will be able to request the loans from tomorrow Wednesday, July 20, until December 31 of this year, in the e-mail address As main requirements, the applicant entities must be producers or marketers with operational centers in Andalusia, both cooperative and industrial; not be involved in more than 25 percent by an administration or public entity, and not be beneficiaries of other rescue and restructuring aid. The maximum period of approval or denial of the request will be 30 days from the date of its submission.

The planned operations will support a production of between 40,000 and 45,000 tons and will facilitate both investments and the disposition of cash for management (payroll, payments to suppliers or purchase of goods). The fund will fund a maximum of 50 percent of the oil stocks contributed, with quality certificates issued by technicians from the Ministry of Agriculture and Fisheries. The annual nominal interest rate applicable will be 2.75 percent and the repayment terms may be three, six and nine months for the payment of the principal.

Tax deductions

<strong>Tax deductions</strong>

Regarding the two deductions approved by the Delegate Committee on Economic Affairs, applicable to the Tax on Deposits to Clients, its objective is to alleviate the credit restriction that oil companies currently suffer.

Of these tax benefits will benefit the credit institutions that in 2011 grant loans and loans to the olive sector for the following projects to improve marketing and the business dimension of oil: first integration of associative agricultural entities in cooperative societies of higher degree; merger of agricultural cooperatives; constitution of agrarian cooperatives of second or higher degree, and improvement of the transformation and commercialization structures.

All these projects must be promoted by companies with a turnover volume of at least 40 million euros in 2010. Likewise, participative loans, venture capital operations and the taking of minority and temporary interests in the market may qualify for this tax advantage. The social capital of companies with repurchase agreement or agreed exit.

Andalusia, with more than 1.5 million hectares and 320,000 farms, concentrates a third of the European olive grove, 40 percent of the world production of olive oil (around one million tons) and 20 percent of the of table olives (400,000 tons).

Both productions have a great weight in the Andalusian trade balance, with exports representing 21 percent and 7 percent of total sales of agri-food products abroad, respectively.

The Andalusian sales of olive oil abroad (1,252 million euros) exceeded last year for the first time the Italian. The Andalusian olive grove, which represents 60 percent of the Spanish olive area, is distributed throughout the eight provinces, with special relevance in Jaén, southern Córdoba, north-west of Granada, north of Málaga and southeast of Seville. The activity linked to their farms generates more than 22 million wages per year (35 percent of Andalusian agricultural employment). Currently, 819 oil mills operate in the Autonomous Community, of which 363 are cooperatives and 600 are olive oil packing machines.