Romania PM: Govt To Earmark Extra Funds For 2010 Clunkers Program, If Necessary

Boc visited Tuesday the company Remat Holding based in Ploiesti, southern Romania, which collects used cars under the clunkers program.

During his visit, Boc also talked to people who came to Remat to hand in their used cars and get vouchers in exchange. Boc advised them to be very careful if they want to buy vouchers within the clunkers program, and to make sure they are accompanied by mandatory documents.

Romanian Environment Minister Borbely Laszlo has recently said he wants to extend the local clunkers program to include local authorities and institutions, adding he hopes to get the government to drop the ban on new purchases of vehicles applied to public institutions.

Romania's 2010 clunkers program set off on February 18 after the Government relaunched the campaign for the scrapping of old cars. The new and improved program sets one owner can scrap multiple cars and receive multiple vouchers.

Romania has assigned a total 228 million lei (EUR1=RON4.1092) for the clunkers program in 2010.

Romanians scrapped little over 32,000 cars older than ten years within last year's clunkers, namely some two thirds of the overall number of vehicles the government had planned to have scrapped. The state spent nearly RON123 million on the clunkers program in 2009.

In the summer of 2009, the government extended the clunkers program by allowing an unlimited number of cars that can be scrapped by individuals and including light vehicles in the category of vehicles than can be purchased in exchange for scrapped cars.

The government is also allowing companies to renew their car fleets within the program.

While individuals get a scrap bonus of RON3,800 to buy a new car, companies may not get more than EUR200,000 per year.

The clunkers program for 2010 has also been extended to cover tractors.

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