Moldovan farmers drown in debt, seek government relief
Numerous Moldovan farmers are grappling with a severe financial crisis as banks seize their assets due to mounting debt accrued from agricultural loans.
Despite the Ministry of Agriculture's assertion of implementing various support measures, including a substantial 1.3 billion lei subsidy, many farmers claim to have received minimal or no state aid.
Igor Gonța, a farmer from Flocoasa village in Cantemir district, cultivates corn, sunflower, wheat, and rapeseed on a 33-hectare plot. In 2022, he secured a 700,000 lei loan to purchase agricultural equipment, which was subsequently pledged as collateral for a five-year term. Despite diligent efforts, Gonța has been unable to repay the debt, leading to the freezing of his personal and business bank accounts.
"Last Friday, the bank seized all the equipment I had pledged as collateral. They even froze my personal account, which I rely on to support my family of four. I am facing a dire financial situation," lamented Gonța.
Gonța is actively seeking solutions to salvage his farm and provide for his family. He is also hopeful for government intervention.
"We are not politically motivated. Our sole focus is supporting our families. I aspire to provide a future for my four children here in my homeland. I am grateful to my colleagues who have extended a helping hand, providing seeds and fuel, as I have been financially incapacitated since June," explained Gonța.
Gonța is not alone in this predicament. The Farmers' Force Association reports that hundreds of farmers have lost their pledged agricultural equipment due to unpaid debts. When contacted, the Ministry of Agriculture maintained that it is actively supporting farmers through various measures and is engaged in ongoing dialogue with both farmers and creditors.
"To date, approximately 1.3 billion lei has been allocated this year in the form of subsidies and support measures for agriculture. Additionally, farmers affected by adverse weather conditions in the past three years have received financial support from the reserve fund," stated Alexandra Șian, Secretary of State at the Ministry of Agriculture.
Șian further clarified that, in addition to the 100 million lei allocated from the reserve fund, a law has been enacted to enable farmers to renegotiate the terms of their loans. It's worth noting that the Farmers' Force Association recently called for the resignation of Agriculture Minister Vladimir Bolea.
In a letter addressed to the central authorities, farmers expressed deep concern over the dire state of the agricultural sector, the delay in promised financial support, and the perceived inefficiency of recently implemented legislative measures. While the ministry declined to comment on the resignation request, it reiterated its commitment to addressing the needs of farmers.
Translation by Iurie Tataru
