Romania’s central bank agrees conditionally with a loan repayment moratorium for farmers

Farmers will have to demonstrate their revenues dropped by 30% in 2023 and should not distribute dividends, while the banks will have to build up adequate provisions, according to a preliminary list of conditions expressed by the National Bank of Romania (BNR) in response to the Ministry of Agriculture’s draft emergency ordinance on instituting a loan repayment moratorium for farmers, Economica.net reported.

The force majeure condition will have to be defined much more precisely than the drought is defined in the draft ordinance.

Also, there should be a third party, such as the Ministry of Agriculture or subsidy payment agency APIA, to ascertain and verify whether the conditions of force majeure have been met in the case of farmers who apply for the moratorium.

The obligation to pay the outstanding debts of farmers accumulated at banks and/or leasing companies, due in 2023 to the banks, may be suspended at the request of the debtor for a period of one month, up to 12 months, according to a draft ordinance of emergency posted on the website of the Ministry of Agriculture.

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