Restructuring of agricultural holdings
The government is to deal with a bill on debt restructuring of agricultural holdings. According to the draft Act, the restructuring is to cover debts of a monetary nature which arose in connection with agricultural activity. Natural or legal persons who have been insolvent or threatened with insolvency and who have exercised an agricultural activity for at least three years will be able to exercise the right to debt relief.
According to the data of the National Debt Register, the debt of rural residents has recently increased. More than 20% of the debt relates to liabilities towards banks and financial institutions. According to the draft law, support for agricultural producers will enable them to repay their liabilities without the consent of creditors to their restructuring. The measures taken will not reduce the amount of debt to be repaid.
The Act will not be applicable to persons in bankruptcy or liquidation or undergoing restructuring proceedings.
