Moldova plans to introduce a moratorium on debt repayment for farmers affected by severe drought this year
This is envisaged by amendments to the Law on Some Measures to Support Farmers in Connection with the 2024 Drought, which the Parliament adopted in the first reading. The legislative initiative was developed by Viorel Barda, a member of the ruling Action and Solidarity Party (PAS) faction, noting that the law on measures to support farmers, previously approved by the Parliament, did not have the expected effect, which required its revision. According to the proposed document, from the moment the law comes into force until October 31, 2025, a moratorium will be introduced on the payment of outstanding debts, including penalties and fines that farmers owe to their creditors. The document also revises the eligibility criteria for farmers in debt. The protection measures will be available to farmers whose crops have been damaged to at least 40% of their yield on at least 40% of their land. A new criterion is also proposed, according to which farmers managing 1,800 hectares or less will also be able to benefit from the measures. The bill also revises the deadline by which farmers will have to notify creditors of crop damage and activate the suspension of obligations to pay outstanding debts. This notification will be possible until 28 February 2025. Herewith, the effect of enforcement orders and any possible enforcement orders or other measures to collect claims, including applications for the initiation of insolvency proceedings for unpaid debts arising from loan agreements and leasing agreements with banks, non-bank credit institutions or savings and loan associations concluded before 1 September 2024, as well as from contracts for the sale or supply of phytosanitary products and seeds used in the cultivation of agricultural crops concluded before 1 September 2024, are suspended. The new provisions also establish a ban until 31 October 2025 on the assignment of claims to third parties - creditors without the consent of the debtor. It is stipulated that debts and payments suspended in accordance with this law are not subject to reflection in credit history bureaus as overdue debts during the period of validity of this law and are subject to revision jointly with creditors. // 19.12.2024 — InfoMarket.
