The government is helping farmers with a loan moratorium

By: STA Date: 2025. 12. 11. 09:00

🎧 Hallgasd a cikket: Nyelv: Sebesség: 1.05×

In order to offset the damage caused by frost and drought, as well as the oversupply in the pig market, we are helping farmers with a new tool – announced István Nagy, Minister of Agriculture. The government has created the possibility for producers who have suffered damage, as well as 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.

(Photo: AM)

The Minister explained that the government is doing everything in its power to help farmers financially stabilize them. Due to the market uncertainty and the decline in purchase prices resulting from the Russian-Ukrainian war conflict, farmers’ liquidity has also been put 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 that in the case of frost damage, the moratorium should be applied until April 1, 2025, in the case of drought damage, until July 1, 2025, and in the case of farmers engaged in pig farming and pig breeding, the moratorium should be applied to loans and financial leasing related to the affected agricultural activities concluded until November 30, 2025. The possibility also applies to the fulfillment of the principal, interest and fee payment obligation, until November 30, 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 working capital loan with a favorable interest rate, 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.