Commercial banks will not penalise farmers that fall behind in loan payments

The commercial banks in Moldova will not levy penalties and other fines on the farmers that are falling behind in loan repayments, Prime Minister Vasile Tarlev stated Friday at the meeting of the Commission for Emergencies. Thus, the Premier says, the commercial banks that extend loans to farmers have treated the situation of the drought-hit farmers with compassion and responded positively to the Government’s appeal to reschedule payment terms. Tarlev pointed out that all the farmers who borrowed money from banks should conclude respective agreements with their lenders as soon as possible. At the same time, the National Bank, in cooperation with the Ministry of Economy and Trade, the Ministry of Finance and commercial banks are considering the opportunity of opening a line of bank credits to enable the farmers to take out new long-term loans, which will be repayable no sooner than from the second quarter 2008. Earlier, the Government promised to negotiate a new line of long-term credits for agricultural producers with the foreign donors.