AM: The government also helps farmers affected by foot-and-mouth disease with a loan moratorium

By: STA Date: 2025. 04. 07. 11:00

The government has decided on further assistance for farmers affected by the extremely rapidly spreading foot-and-mouth disease. Thus, those affected can temporarily use the payment moratorium after their loan contracts in order to stabilize their financial situation – the ministry told MTI on Sunday.

(Photo: Pixabay)

According to the decree published in the Hungarian Official Gazette, the government provides the possibility of a loan moratorium to debtors operating livestock farms – including the farm operator, the farm owner and the owner of the animals – that were subject to official epidemiological measures (e.g. elimination of susceptible animals, quarantine or restriction) in 2025 in order to prevent or control foot-and-mouth disease – they were informed. The Ministry of Agriculture draws the attention of those concerned that the moratorium is not automatic, debtors must notify the creditor by sending a decision ordering this measure. The debtor may decide to use the payment moratorium at any time during the payment moratorium period. The payment moratorium will last for loans and financial leasing that have already been disbursed until April 30, 2026. It was explained that the deadline for fulfilling the contractual obligation and the duration of the commitment – including contracts that expire during the payment moratorium – will be extended by the duration of the payment moratorium. The creditor may not terminate the contract by notice due to the debtor’s failure to fulfill his principal, interest or fee payment obligations until April 30, 2026.

The principal debt cannot be increased by the amount of interest not paid during the payment moratorium, neither during the payment moratorium nor after the payment moratorium has expired

The interest accumulated during the moratorium, together with the installments due during the remaining term, must be paid in equal annual installments during the term after the payment moratorium has expired. After the payment moratorium has expired, the term is extended so that the amount of the installment that becomes due and the interest to be paid in the installments arising during the payment moratorium together does not exceed the amount of the installments according to the original contract. The rules on interest must also be applied to fees accordingly – the ministry informed.

MTI