Banks will introduce an individual approach to each agricultural producer who has loan debts.
Such an agreement was reached following a meeting with heads of commercial banks at the Ministry of Agriculture and Food Industry. During a briefing on Tuesday, head of the Agriculture Ministry Vladimir Bolea said that the meeting discussed the situation of farmers from the southern regions of the country, as well as all agricultural producers, who are in a difficult situation due to the collapse of prices for agricultural products. According to Vladimir Bolea, lending and on-lending were discussed, as well as options for agrarians to overcome the extremely difficult situation. "Banks again confirmed that each case will be considered carefully and decisions will be made on an individual basis. First of all, we are talking about a professional approach to on-lending," the Minister said, noting that the banking system also has its own rules. Thus, when carrying out on-lending banks should form provisions in the amount of 30%, not 5%, and this significantly increases the cost of the loan, reducing the interest of both the agri-producer and the bank. According to the agreements reached, commercial banks will prepare a letter and send it to the government and the National Bank to discuss the possibility of making amendments to the legislation - on lending to farmers from areas with high risks of natural emergencies, where there is a high risk of crop loss from drought, hail and other phenomena. In particular, it will be proposed to equate such a situation and the supporting certificate of the Commission for Emergency Situations to a force majeure situation. Vladimir Bolea said that all the participants in the meeting expressed solidarity with the position of the government and the Agriculture Ministry that the situation of each agricultural producer, who has loans in the bank, should be considered individually: in the interests of the farmers and in the national interests of Moldova, which are the support and sustainable development of agriculture. // 03.10.2023 - InfoMarket.
