As reported, the Drought Emergency Task Force has proposed a five-point action plan due to the historical drought damage that has affected the country. As part of this, the government has ordered a moratorium on the loan from September 2022 until the end of 2023 for investment and working capital loans to agricultural enterprises.
The financial regulations were also published in the Hungarian Gazette on August 8, together with the content of the necessary forms.
The debtor is entitled to submit the application if its net sales revenue in 2021 – calculated without the purchase value of the goods sold – from the areas of crop cultivation, animal husbandry, wildlife management and related services, forestry, fishing and fish management is 50 percent of its net sales revenue in 2021, or that The purpose of the loan corresponds to one of these branches, A . reported a file.
In addition, the termination moratorium also comes into effect, and the loan and lease agreement of the affected parties cannot be terminated with notice until December 31, 2023 due to non-fulfillment of their principal, interest or fee repayment obligations.
The decree also stipulated the following: Insurance companies’ procedures for estimating drought damages and paying the amounts granted for drought damages will be accelerated. Accordingly, insurance companies must pay the amount awarded to farmers within 14 days of notification of drought damage.
