The Farmers’ Insolvency Commission is clarifying the lists of affected farmers; it will analyze their files and make targeted decisions on each case separately – the Ministry of Agriculture.
Agriculture and Food Minister Vladimir Bolea announced this at a briefing, where he summarized the latest actions and decisions taken to identify and solve the financial problems of grain farmers. The head of the Agriculture Ministry said that the commission to determine the insolvency of farmers has already started its work. The Commission will make a list of economic agents on the verge of bankruptcy and develop targeted measures for them. He noted that as a result of recommendations to ask the Chamber of Commerce and Industry to issue force majeure certificates justifying the non-fulfillment of contractual obligations, 15 requests for these certificates have already been registered in the last week. With these certificates, the agrarians will go to the banks to justify the impossibility of fulfillment of contractual obligations. Vladimir Bolea explained that the so-called moratorium requested by the farmers cannot be established. "The argument is that it does not fall under the legal provisions. Moreover, even the Emergency Situations Commission does not have that authority because no public body has the right to interfere in private matters. What we can do is to find solutions together. During the meeting with representatives of the banking system, we will discuss the existing opportunities to mitigate the situation," said the head of the Ministry of Agriculture. According to him, financial data of farmers who took loans and now cannot repay them should be studied. "The Commission will study this data to determine how and since when these debts have accumulated. The profile of farmers on the verge of bankruptcy is different. The agricultural industry is diverse and there are many aspects that can affect a farmer's financial situation. It must be recognized that there are those who have made irrational investments or made erroneous financial decisions. Others have already made a number of financial restructurings and these come with certain risks and consequences. For this reason, every action must be prudent. Effective communication between the parties is the only way to improve the situation of those who are experiencing financial difficulties," the Agriculture and Food Minister said. He said that by the end of the week he will hold a meeting with representatives of non-banking institutions to clarify all aspects related to the agricultural sector and farmers at risk of insolvency. Vladimir Bolea emphasized that, following last week's discussions, as well as the discussions held on Tuesday with farmers, parallel work is under way on all fronts to define a legal framework for solving farmers' financial problems. He reiterated that the proposal to redirect 500 million lei of compensation payments from the Agency for Intervention and Payments (AIPA) fund for 2024 and 200 million lei from the government's intervention fund is not supported by the Cabinet and is considered a discriminatory measure against other farmers and agricultural entrepreneurs. "The solutions that the government proposes today are as follows: the commission is already working to clarify the seriousness and complexity of the situation. At the same time, the lists of affected farmers are being clarified. The Commission will analyze the case of each farmer, determine the period for which he has accumulated arrears, and in this way we will have targeted solutions for each case separately. Subsequently, the government will identify resources in line with the Commission's analysis and recommendations. I assure you that there will be found all possibilities which will lead us out of this impasse to move forward," said the head of the Agriculture Ministry. He recalled that the authorities are doing their best to support the agricultural sector, which is a priority for the government, and in this sense, the subsidy fund has been increased this year. An additional financial aid of 200 million lei has already been transferred to the farmers' accounts, while other funds will continue to be integrated in the policies to support farmers. "It is just that all this will be done within the budget that our country has," Vladimir Bolea said. He urged farmers who have force majeure circumstances to apply for a certificate at the Chamber of Commerce and Industry (CCI). // 30.11.2023 - InfoMarket.
