AM: Government helps farmers with a loan moratorium

(Photo: drnagyistvan.hu)

It was emphasized that the government has created the possibility for producers who have suffered damage and farmers engaged in pig farming and breeding to benefit from a loan moratorium. This assistance will last until the end of November next year, during which time those eligible will not have to pay either capital or interest to the lending financial institutions.

The Minister explained that the government is doing everything in its power to help farmers financially stabilize

The market uncertainty resulting from the Russian-Ukrainian war conflict and the decline in purchase prices have also put farmers’ liquidity at risk. That is why it was necessary to create the possibility for the affected producers to choose a payment moratorium for a temporary period after their loan contracts. István Nagy highlighted in the announcement that the moratorium should be applied to loans and financial leasing related to the affected agricultural activities concluded until 1 April 2025 in the case of frost damage, until 1 July 2025 in the case of drought damage, and until 30 November 2025 in the case of farmers engaged in pig farming or pig breeding. The possibility also applies to the fulfillment of the principal, interest and fee payment obligation, until 30 November 2026. The application of the moratorium is not automatic, the farmer must notify the lender that he wishes to participate in it. The notification can be made at any time during the moratorium. It is important to consider that the duration of contracts expiring during the payment moratorium will be extended by the duration of the payment moratorium, and that the entry may affect the farmer’s new borrowing needs. In addition, the affected producers also have access to a favorable interest-rate working capital loan, an interest subsidy system, and a loan guarantee system. Hungarian farmers, as before, can continue to count on the support and assistance of the government – the minister emphasized.

MTI