60 RUMANIA. - CREDIT 



Of the net profits 90 per cent, belong to the State and 10 per cent, are 

 deducted to he paid into the reser\^e fund. The deductions for the reserve 

 fund will cease as soon as its amount has reached 5,000,000 francs. 



Section II. grants both long and short-term credit for from three to 

 ten years. This credit is granted for initial installation. According to the 

 law of 1889 (art. 3) the Ministry of the Public Domains is authorized to 

 sell the State's landed property in 5-hectare lots. The purchasers of these 

 lots are obliged to establish themselves on them within three years. Sec- 

 tion II. facilitates settlement of this description by granting to the settlers 

 loans enabling them to build dwellings and buy live stock and agricultural 

 implements. No more than 600 francs may thus be lent to a single bor- 

 rower. The rate of interest is 5 per cent. 



Section III. was formed on 16 Januarj^ 1906. On 27 May of that year 

 it was separated from the Agricultural Credit and remained separate until 

 30 INIarch 1908 when it once more became Section III. thereof. 



It makes long-term loans, for twenty years, for the plantation of vines. 

 All its loans are guaranteed by the State on the security of a mortgage on 

 the planted vines. The sum of the loan may not exceed two thirds of the 

 value of the vineyard. The credit granted is supplied to the borrower on 

 account as gradually the planting, which is inspected by an emplo3'ee of the 

 lending institution, is effected. 



The rate of interest is 5 % per cent., plus i per cent, for impunctual 

 borrowers (art. 7). The loans are amortizable in fifteen years but the first 

 repayment does not take place until after five years, at which date the vines 

 are beginning to be productive. 



From 1882 to 1892 the departmental banks granted creditfor 188,194,892 

 francs. When they ceased to work in 1892 the total credit they had grant- 

 ed was for 19,988,041.35 francs, and this credit was transferred to the Agri- 

 cultural Credit. 



From 1903 to 31 December 1911 Section I. of the Agricultural Credit 

 granted credit for 504,594,240 francs. At the end of 1911 the amount of 

 the credit was 16,984,046.05 francs. 



At the same time the following deposits were received : 



From 1882 to 1892 5.133.534 francs 



" 1893 " 1911 33,111,507.26 



On I January 1912 deposits amounted to 3,374,123.84 francs. 



On 31 December 1911 the reser^^e fmid amounted to 2,608,693. 12 francs. 



From 1893 to 31 December 1911 the net profits paid to the State amoun- 

 ted to 27,478,238.08 francs, that is a sum 4,478,238.08 francs in excess of 

 the amount of the capital advanced by the State. 



Section II. in only four yearS (1894, 1895, 1897 and 1898) granted cre- 

 dit to the amount of 862,060 francs. 



Section III. began business in 1907 and granted credit for the following 

 sums : 943,100 francs in 1907 ; 1,297,600 francs in 1908 ; 1,045,600 francs 

 in 1909; 846,800 francs in 1910 ; 3,271,000 francs from 1911 to 1914 — 

 that is a total sum of 7,404,100 francs from 1907 to 1914. 



