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International Internet Magazine. Baltic States news & analytics Friday, 29.03.2024, 15:14

Increasing number of Estonian farmers apply for grace period in banks

BC, Tallinn, 26.01.2015.Print version
An increasing number of Estonian farmers are applying for a grace period in repayment of loans to banks, and the amount of payment defaults of agricultural companies has increased from 1.5 million to 2.3 million euros, LETA/Eesti Päevaleht writes.

When Russia last August enforced an import ban to European Union food products, Estonia Agriculture Minister Ivari Padar suggested that banks could, if necessary, help out farmers and then the proposal was graciously agreed to.

 

If at first it seemed that the farmers did not show major interest towards this opportunity, by now the situation is different and even though Swedbank does not reveal how many applications for a grace period they have received, the situation is illustrated by the fact that in 2013, the number of these applications was zero.

 

In SEB bank, a dozen farmers have asked for a grace period or repayment schedule change and in Danske bank, only one client has taken a grace period.

 

The difficulties of farmers are proven though by the Krediidiinfo payment defaults study of the second half of 2014, where the agricultural sector stands out, as unlike others, its business indicators have deteriorated.






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