The Ministry of Agriculture is extending the extraordinary interest subsidy program

By: STA Date: 2023. 01. 09. 09:25

A decision was made to extend the advanced interest subsidy of up to 14 percent of the Agrár Széchenyi Kártya Overdraft for agricultural producers affected by the drought until March 31, 2023.

(Photo: Pixabay)

This year’s historical drought situation and the explosive increase in energy and feed prices are a serious burden for farmers. Therefore, the agricultural ministry will also provide the possibility of taking out the overdraft loan introduced for agricultural enterprises, with particularly favorable interest rates, for free use in the first quarter of 2023.

You can use the opportunity until now

The construction of the Agrár Széchenyi Kártya Overdraft, supported by a higher level of interest subsidy, can be used by livestock keepers and plant growers who have been proven to be affected by drought. With the current decision, the effective date of the concluded loan agreements will be extended until March 31, 2023. The rate of the state interest subsidy is a maximum of 14 percent, so that the initial annual interest burden of the loans, taking the interest subsidy into account, is also very favorable, currently at 6-7 percent. The Agrár Széchenyi Card Current Account Loan will of course also be available after this date in addition to the normal interest subsidy.

Other deadlines have also been extended

In addition to the above, the affected farmers are informed that an important change has also taken place in relation to the basic structure of the Agrár Széchenyi Kártya Overdraft, with the European Commission significantly increasing the limited amount of subsidies for alleviating the economic difficulties caused by the Ukrainian-Russian conflict and the deadline for granting the subsidies. Based on this, businesses with an Agrár Széchenyi Card Overdraft that came into effect until December 31, 2023 will also receive the higher limit amount (for food producers and agricultural product processors/distributors: 2 million euros, for agricultural producers: 250 thousand euros; for the fishing sector: 300,000 euros) can use the interest and guarantee fee support related to the construction.

State-supported working capital loan programs contribute to mitigating the consequences of damage caused by drought on a historic scale. Ensuring the continuity of agricultural production is essential in order to preserve the security of the food supply.