In response to the ongoing challenges in the agricultural sector and taking into account climate risks, price volatility, high production costs, and losses incurred over several consecutive years, the government has extended the repayment period for working capital loans to support farmers in overcoming financial difficulties.
This is provided for in the amendments prepared by the Ministry of Agriculture to Cabinet Regulation No. 582 of 3 December 2019, “Procedure for Implementing the State and European Union Support Programme for the Provision of Loans for the Acquisition of Working Capital in the Agricultural, Forestry, Fisheries and Aquaculture Sectors”, approved by the Cabinet of Ministers on Tuesday, 21 April.
Longer loan repayment periods will reduce financial pressure on farms, allowing businesses to stabilise cash flow and continue their economic activities.
The amendments introduce more flexible repayment conditions for farmers, particularly for those covering losses from previous years. Going forward, different repayment terms will apply depending on the purpose of the loan. Financing for the new production season will continue to be available with the existing repayment term of up to two years. Meanwhile, loans intended to cover liabilities from previous seasons (2024–2025) may have repayment periods of up to eight years, and in exceptional cases up to ten years.
The amendments also expand loan restructuring options by allowing repayment schedules and loan terms to be adjusted according to the borrower’s financial situation.
The amendments to Regulation No. 582, “Procedure for Implementing the State and European Union Support Programme for the Provision of Loans for the Acquisition of Working Capital in the Agricultural, Forestry, Fisheries and Aquaculture Sectors”, will enter into force on the day following their publication in the official gazette Latvijas Vēstnesis.
