Within October there will be a comprehensive legislative initiative by the government for the regulation of bad loans within the framework of what was announced yesterday in the Council of Ministers, announced the Minister of Rural Development and Food Kostas Tsiaras, in interviews on SKAI 100.3 radio and ERT News.

The aim of the government, he said, is for the regulation to start being implemented from the new year so that this noose can be removed from the necks of thousands of farmers.

The arrangement concerns claims amounting to 3.8 billion euros in loans, more than 750 agricultural cooperatives, and approximately 21,000 farmers, while assets worth more than 1.5 billion euros are frozen, which, as he noted, if there was a possibility to be utilized in many cases they would solve the problem of bad loans.

As he said, in the first phase, a new management framework will be created by entities that have proven experience of financing in the primary sector.

Through this framework, it will be possible to extend the repayment period of the loan and reduce the loan interest rate, while at the same time it will be provided for:
– the cancellation of interest,

– the impairment of the loan,

– the refinancing of the loan as well

– its partial or total deletion.

In addition, as the Minister of Rural Development and Food said, the liquidator will be able to determine the terms of compromise or regulation for more than one case that will have uniform characteristics.

The purpose of the arrangements, Mr. Tsiaras emphasized, is the successful settlement of loan claims against farmers and agricultural cooperatives, which acts as a sword of Damocles for farmers. The management of red agricultural loans is a capital issue, the Minister pointed out, for the development of the Region, as human and property resources will be released, the agricultural economy will be strengthened, and the social fabric will be kept intact. “We must understand that the primary sector, beyond its significant contribution to the country’s GDP, contributes decisively to the maintenance of social cohesion, but also to the effort to support the Greek region,” he characteristically added.

Integrated support framework for farmers

Mr. Tsiaras emphasized that the regulation on bad loans is part of the four measures announced by the Prime Minister at the TIF for the support of the primary sector and they concern:

  1. In the return of the Excise Tax on agricultural oil through a stable mechanism that leads to a reduction in production costs.
  2. In the regulation of red loans
  3. In the investment in the production of products that give added value, such as horticulture in which the value of exports in 2019 was 2.2 billion and in 2022 it reached 3.2 billion euros, so, he emphasized, greenhouse crops must be strengthened.
  4. In the utilization of idle land, mainly to support the goal of increasing greenhouse crops.

We are changing the irrigation map

Asked about issues related to the management of water resources, Mr. Tsiaras said that there is an ongoing program of dozens of important irrigation projects throughout the territory. He specifically mentioned the five major projects carried out, through PPP, from the HYDOR 2.0 program, which mobilizes resources of more than 4 billion euros, the many irrigation projects carried out throughout the country through PPPs, the establishment – initially in Thessaly and Crete – Water Management Organizations and the utilization of digital technology for proper management of water reserves.

Asked about fish farming, he said that it is a sector with dynamics and he believes in its potential to contribute even more to the economy and expressed his confidence that this will become possible once the Ministry of Environment completes the special spatial plans, which are priority of the government.
Referring to the disasters in Corinth, he said that in this case too the ELGA and State Aid mechanisms will be activated for the payment of compensation.

For Thessaly, he noted, that 310 million euros have been paid as agricultural compensations and within October the liquidation of livestock farmers’ objections will be completed.

Finally, when asked about the celebratory event on October 4, for the 50th anniversary of the founding of the ND at the party’s historic offices at 18 Rigillis, he said that the phone call of Prime Minister Kyriakos Mitsotakis to former presidents Kostas Karamanlis is not the subject of discussion or special analysis and Antonis Samaras, he emphasized that “we must all be there”.