The obligation to pay the debt of farmers accumulated in banks and/or leasing companies, which is repaid in 2023 to banks, can be suspended at the request of the debtor for a period of one month to 12 months, according to the project. at the discussion of the Ministry of Agriculture. The document reached the desk of bankers on Friday, and they will analyze it and provide comments.

What the government proposal shows:

• Taking into account the current context, which is characterized by the level of prices for material resources needed in agriculture (fuel, seeds, pesticides, fertilizers), the consequences felt in the agricultural sector after the war launched by Russia against Ukraine in February 2022, as well as the the fact that In 2023, farmers faced a soil drought that was extremely severe in extensive agricultural areas nationally, affecting large areas of crops

• In January 2023, higher than normal air temperature prevailed throughout the country, even particularly high at the beginning of the period; in April 2023, the entire agricultural area was dominated by an alternation of normal warm days with periods when the weather was colder than usual. July 2023 was characterized by a generally warmer air thermal regime in most agricultural regions, even hot in the plain areas in the south of the country, with a short alternation of days in which temperature deviations were negative compared to reference norms and intervals in which thermally normal weather prevailed ;

The situation of collected areas and products obtained in 2023 shows that:

• – for the corn harvest, the total production in 2023 was reduced by approximately 30% compared to the average total production in 2019, 2020 and 2021;

• – for the sunflower crop, the total production in 2023 was reduced by approximately 14% compared to the average total production in 2018, 2020 and 2021;

• – for the soybean crop, the total production of 2023 is reduced by approximately 9% compared to the total average production of 2019, 2020 and 2021;

• taking into account the impact created by the corresponding soil drought, the total or partial impossibility of harvesting / plantations in 2023, taking into account the seasonality of agricultural activities and the vital sphere that agriculture represents for the economy and the population, agricultural producers face a lack of liquidity, which affects the economy by reducing or even in the absence of income,

As all this can cause social consequences, it can lead to economic and financial blockades affecting the circulation of money and banks, but above all it has a direct impact on the Romanian food industry, by derogating from the provisions of Emergency Government Decree no. 50/2010 on credit agreements for consumers, approved as amended by Law no. 288/2010, with further amendments and additions and Government Resolution no. 51/1997 on leasing operations and leasing companies, reissued, the obligation to pay the accumulated outstanding debt, as well as the due payments related to the loans, which are capital contributions, interest and commissions owed by the debtors to the creditors in 2023 before the date of entry into force of this emergency order, is suspended at the request of the debtor for a period from one month to 12 months, but not later than 31.12.2024.

The repayment period of the contracts, respectively, the maximum period of credit provided by the regulations on creditors, may be exceeded by a period equal to the duration of the suspension of the payment obligation.

For debtors in whom the extension of the loan repayment period exceeds the maximum age stipulated by the regulatory acts of creditors providing loans, creditors start restructuring loans within the maximum age.

The provisions of this emergency order apply to debtors who have entered into an agreement to receive a loan, the repayment term of which has not arrived and the creditor has not declared the expected repayment term before the entry into force of this emergency order.

The measure provided for in para. (1) it is provided exclusively to debtors whose incomes have been directly or indirectly affected by a serious situation caused by a natural disaster in agriculture due to the manifestation of the phenomenon of soil drought, i.e. the debtors present to the creditors a protocol of ascertainment and assessment of losses concluded in accordance with the order of the Minister of Agriculture and Rural Development and the Minister of Internal Affairs No. 97/63/2020 on the approval of the Regulation on the management of emergency situations caused by dangerous meteorological phenomena that led to soil drought, with subsequent changes and additions.

Debtors’ interest corresponding to the due sums, the payment of which is suspended in accordance with para. (1) is capitalized to the available credit balance at the end of the suspension period.