Loan payment

Hungary plans moratorium on loan repayments to agricultural sector to ease impact of drought

BUDAPEST, July 31 (Reuters) – The Hungarian government will impose a payment moratorium on loans to the agricultural sector from September until the end of 2023 to ease the burden on the sector following a drought, the Minister of Agriculture said on Facebook. Agriculture Istvan Nagy. on Sunday.

Nagy said the payment moratorium, one of a series of measures announced, applies to loans for investment and working capital financing.

The government also said insurance companies will have to speed up payments following farmers’ reports of drought damage, while livestock farms will receive financial assistance to buy fodder. Irrigation efforts will also be boosted, Nagy said.

“Due to the lack of rainfall since last autumn, the majority of the Hungarian territory was hit by severe or high-level drought at the end of July,” the minister said. “The situation in our sector is extreme.”

The Ministry of Agriculture said on Friday that due to the “historic” drought, wheat and barley yields were below average for previous years, adding that the corn and sunflower harvest was also “at risk”. serious”.

The total amount of wheat harvested in Hungary this year was around 25% lower than the average yield of the last five years. (Reporting by Anita Komuves; Editing by Hugh Lawson, Kirsten Donovan)