Romanian farmers get bank loan repayment moratorium

Farmers whose crops were affected by drought in proportion to 50% this year will not have to pay their debts to banks and non-bank financial institutions until August 1, 2025, according to one of the three emergency ordinances endorsed by the government of Romania on October 9.

Minister of agriculture Florin Barbu announced that the government approved three emergency ordinances on October 9 to support the farmers affected by the drought, two of which are complementary, Hotnews.ro reported.

The first emergency ordinance aims to grant compensation for the damages incurred by all farmers in the 2023-2024 agricultural year. The support can reach up to RON 1,000 (EUR 200) per hectare, depending on the damage assessment reports.

The second emergency ordinance concerns "the possibility of de jure suspension of the repayment of current and outstanding loans due in 2024 for a period of time until August 1, 2025".

The third emergency ordinance regards the loans extended by the government to farmers.

"We have extended the state aid scheme so that the soft loans guaranteed by the state can also be used for the payment of outstanding debts to suppliers and distributors of inputs. We are talking about loans guaranteed 100% by the state with a fixed interest rate and the rest of the commissions paid by the Ministry of Agriculture and the government," said Barbu.

(Photo source: Inquam Photos/George Calin)