Emergency Agricultural Loan discussed at new round of negotiations with Moldovan farmers

Chisinau, 24 February /MOLDPRES/ - The new mechanism proposed to farmers, Emergency Agricultural Loan, was one of the principal subjects discussed with the producers of cereals and their representatives at the headquarters of the Agriculture and Food Industry Ministry (MAIA) on 23 February.     

According to MAIA, decision-makers made a clarification showing that the mechanism was created from the very beginning with provisions adjusted to the needs of the farmers, who have delays at the payment of loans and who renegotiated the loans at banks. In the specific terms of the banking system, they fit into the Substandard category.

„These provisions exclude the earlier obstacles which limited the access to financing. The eligibility criteria for the Emergency Agricultural Loan are meant to be inclusive and accessible. The micro- and small which grow cereals can benefit from the Emergency Agricultural Loan. The maximal value of the loan is of 500,000 lei (25,000 euros). The state will provide a guarantee of 90 per cent of the loan’s value and it is valid during the entire period of the loan contract. By providing this guarantee, the state assumes a significant part of the risk related to these loans, thus encouraging the banks to provide financing to the farmers facing financial difficulties. One of the conditions is that the sums provided to farmers should not liable to be arrested or the debt should not be enforced by the banks,  state’s institutions or other entities,’’ the quoted source said.       

Besides, on 27 February, a working group will be set up, focused on the processes of crediting and on the solving of the complex problems in the agricultural sector, with the involvement of farmers and relevant institutions.    

According to the Agency of Intervention and Payments for Agriculture (AIPA), till 23 February, 144 applications were received on behalf of farmers for accessing financial assistance out of the 50 million lei allocated by the government, from the Intervention Fund. The farmers who bore losses in the wake of the drought from the summer of the 2023 year can benefit from this assistance. The call is opened till 15 March 2024.