Protection for farmers: Authorities establish moratorium on forced execution of assets for farmers affected by natural disasters
In the Republic of Moldova, a temporary moratorium will be set up for a duration of 12 months on the forced execution of assets belonging to micro and small farmers affected by natural disasters occurring during the years 2024-2025. This measure is provided in a draft law that is to be approved by the Government at the meeting on 29 January.
The project was proposed as a legislative initiative by a group of deputies and aims to ensure the continuity of agricultural activities and prevent the insolvency or bankruptcy of small agricultural holdings.
According to the initiative, the moratorium applies to the assets owned by farmers who are unable to pay due to circumstances beyond their control, resulting from economic losses caused by natural disasters, as well as to the assets of guarantors and other persons jointly responsible for the obligations of indebted farmers. The temporary suspension of forced executions is exceptional and time-limited.
During the entire duration of the moratorium, the calculation of interest, penalties, and other sums resulting from failure to timely execute these obligations will also be suspended. Consequently, during the mentioned period, no additional debts will accumulate beyond those existing at the time of the moratorium's establishment, a measure intended to provide the necessary premises for the economic recovery of debtors in the agricultural sector.
In its opinion on the project, the Government emphasized its importance for maintaining economic and social stability in rural areas, strengthening farmers' resilience, and ensuring food security in the Republic of Moldova.
The project was recently approved in the first reading by the Parliament, with support from the parliamentary opposition as well. The initiative is to be examined by deputies in the second reading.
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