The clause aims to create additional guarantee for financial interests of the European Union, when some doubts about the creation of artificial conditions by the applicants appear. The amendment applies to Measure 311 “Diversification to non-agricultural activities” and Measure 312 “Support for the Creation and Development of Micro-Enterprises”.
An example for creation of artificial conditions is a separation of an agricultural holding to two parts. This way, owners aim to receive twice the maximum subsidy amount for the project, set in the regulations of the measures. Candidates, who are suspected of creating artificial conditions, first have to establish a guarantee for investment in favor of the State Fund “Agriculture” to the amount of the agreed financial assistance. The guarantee is created when somebody submits an application for final payment. It becomes an integral part of the contract for support and ensures the correct implementation of the approved business plan.
The introduction of additional guarantees is not necessary, if parts of connected candidates withdraw their applications and only one project for support remains.
Examples for the most common cases of creation of artificial conditions are listed in the menu “Legislation” of the website of RDP: http://prsr.bg/.