The authorities developed a new loan product for the agricultural sector amid the discontent of farmers who took to the streets with their tractors. With a state guarantee worth 1.6 million lei, the product will become available to all farmers from March 15, IPN reports.

The loan instrument, which was designed by the Ministry of Agriculture and Food Industry (MAFI) and the Organization for the Development of Entrepreneurship, was consulted with farmers, representatives of commercial banks, the Ministry of Finance, and the State Tax Inspectorate. The product is intended for working capital and will be a permanent tool.

According to MAFI, in order to meet the immediate needs, special conditions were approved in the first year, which will later be modified. Thus, for 2024 the loan period is up to 60 months, while for the future years it will be adjusted to 36 months.

Also, the guarantee period for 2024 was set at up to 18 months, with a subsequent reduction to 12 months. The product will become available on March 15 and interested farmers are encouraged to apply to the banks where they are served to access the financial instrument.

As of March 1, grain producers can apply for the Emergency Farm Loan to the value of 500,000 lei, which will allow them to start spring agricultural works. The tool was implemented after the farmers for consecutive days protested with their tractors, blocking also access to the Leușeni customs post for numerous times.