Small farmers of Moldova receive temporary protection against bankruptcy
The parliament today approved, in the first reading, a draft law that establishes a moratorium on the foreclosure of assets belonging to farmers affected by natural disasters during the period 2024–2025. The document was also supported by the parliamentary opposition.
The moratorium will last 12 months and will apply to micro and small farmers, guarantors, members of peasant households, as well as other persons jointly liable for farmers' obligations. During the moratorium, foreclosures, the calculation of interest and penalties are suspended. Farmers will be able to use the seized agricultural assets in the production process and the production got will be used to pay off debts to creditors.
To benefit from these provisions, farmers must meet more conditions: they must be micro or small farmers, not be in bankruptcy or liquidation proceedings, and not be included in the prohibition list of the Agency for Interventions and Payments in Agriculture. Also, the managed land must not exceed 1,800 hectares, and crops affected by natural disasters must have suffered losses of at least 40 per cent, confirmed by an official act.
Deputy Alexandr Trubca, one of the initiators, said that the moratorium allowed farmers to continue their activity and generate income to pay debts without being subjected to the pressure of foreclosures.
“Without such measures, small farmers risk bankruptcy and losing their operations, with major impact on the rural environment,” added the lawmaker.
The draft law is to be examined in the second reading.
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