The Minister of Agriculture, Viticulture and Consumer Protection, Fernand Etgen, together with Finance Minister Pierre Gramegna, yesterday signed an agreement with Raiffeisen, BGL, BIL and BCEE banks allowing producers of milk and pork to suspend the payment of principal and interest on certain loans related to agricultural production for a period not exceeding twelve months.
As part of the moratorium, banks will not require repayment of principal and interest due in connection with eligible loans. On the other hand, the state undertakes to assume the interest accrued to a maximum of €15,000 per farm concerned.
Fernand Etgen obtained authorisation from the European Commission to implement this aid, which is the result of a state aid notification procedure culminating in November 2016 with an authorisation and negotiation between the banks and the Ministry of Agriculture, Viticulture and Consumer Protection with the support of the Ministry of Finance.
The purpose of the state aid is to temporarily relieve the cash flow of dairy and pig producers, who were severely affected by a difficult market in 2016.
Image: Ministers Fernand Etgen and Pierre Gramegna yesterday. © MAVPC
