Part of the aid given to the Republika Srpska (RS) by Hungary will be used to buy – Hungarian machines. To get such a machine, farmers will need to pay 30 percent of its value.
For the third week now, the Government of the RS has been encouraging farmers in the entity of Bosnia and Herzegovina(BiH) to apply for assistance in purchasing machinery and tools.
35 million euros have been earmarked for this purpose, the first part of the 100 million euros of aid promised by Hungarian Prime Minister Viktor Orban during a private visit to Milorad Dodik, a member of the Presidency of BiH, last November in Laktasi near Banja Luka.
The invitation to farmers in the RS to apply for support is open until mid-October. The “Progressus” Foundation, founded by the Government of the RS and responsible for the implementation of the Hungarian program, is responsible for the application.
Agricultural producers can individually apply for funds in the amount of 2,500 euros to 25,000 euros.
The foundation, after checking and evaluating the applications, sends them to Budapest for a final decision.
“After that (making the decision) the Foundation signs a contract with the users, they pay their share to the supplier, and the Foundation pays the supplier the amount of the grant and the users get the machines,” the Foundation in RS told Radio Free Europe (RSE).
The Foundation also says that farmers can choose the supplier or goods themselves, but that the basic condition is that the machinery, equipment and tools are manufactured in Hungary.
Hungary’s aid to RS in the amount of 100 million euros was announced at the end of last year.
Economist Svetlana Cenic recalls the “friendship between Dodik and Orban”, and believes that Orban is thereby giving Dodik pre-election support.
“It is interesting that (Orban) is giving money, by which it is obvious that he wants him (Dodik) to strengthen himself in power. It is not just about expanding some influence of Hungary, because that will be difficult with this money, but it is that he gives tools to his (Dodik‘s) hands,” says Cenic.
She adds that even through the current aid program, it is evident that practically the money that Hungary set aside to support farmers in the RS will eventually be returned to Hungary, from where the machinery is delivered.
Admir Cavalic, a professor at the Faculty of Economics from Tuzla, in the north-east of BiH, points out for RSE that it is questionable whether the Hungarian program can be qualified as “grant aid”.
This is explained by the fact that farmers in the RS are conditioned to take only machinery produced in Hungary, and at the same time they also give a participation of at least 30 percent. With this, as he states, farmers are later and long-term tied to Hungarian manufacturers in terms of service and parts for the purchased machines.
“It cannot be understood as support, but it can be understood as a domain of sales promotion. It is certainly good for both the buyer and the seller, it can be of mutual benefit. But it is simply not support, where grants, subsidies and the like are received.” Cavalic points out, Radio Slobodna Evropa writes.
E.Dz.
