LAW OF THE REPUBLIC OF MOLDOVA

of September 13, 2024 No. 240

About some measures of support of farmers in connection with drought of 2024

The parliament adopts this organic law.

Art. 1. – This law establishes some temporary measures of support of farmers for the purpose of overcoming effects of soil and atmospheric drought of 2024.

Art. 2. – For the purposes of this law the following concepts are determined:

the creditor – bank according to the definition given in the Law on activities of banks No. 202/2017, and also the bank department of other state performing activities in the territory of the Republic of Moldova; non-bank credit institution according to the definition given in the Law on non-bank credit institutions No. 1/2018; savings and loan association according to the definition given in the Law on savings and loan associations No. 139/2007; supplier of means of farm-production; State Tax Administration;

the debtor – the farmer according to the definition given in the Law on subsidizing of agricultural industry in the rural zone No. 71/2023, signed with creditors credit agreements, loan agreements, leasing, and also purchase and sale agreements of means of farm-production or having the tax arrears or penalty fee.

Art. 3. – Operation of this law extends to the debtor who corresponds in total to the following conditions:

a) he received credits/loans, property in the leasing or means used for agricultural activities based on agreements or supplementary agreements signed from September 1, 2023 to September 1, 2024;

b) as a result of soil and atmospheric drought of 2024 at least 60 percent of the crops which are grown up by it are damaged, and the area of the damaged processed site constitutes at least 50 percent.

The damage rate of crops is confirmed by the act of establishment of the losses caused to the crops emergency situations of natural nature constituted according to appendix 1 to the Methodical management according to damage rate of crops as a result of emergency situations of natural nature approved by the Order of the Minister of Agriculture and the food industry and the Minister of Internal Affairs No. 49/150 of March 25, 2024. The area of the processed site is confirmed by the report 4-AGR, and in case of the debtor owning the parcels of land of agricultural purpose less than 10 hectares – the reference issued primary;

c) concerning it the procedure of insolvency is not initiated.

Art. 4. – Concerning debtors, stipulated in Article 3, the obligation on repayment of the overdue debt formed about day of entry into force of this law, and also the fees/payments which arose based on transactions with creditors subject to payment within six months from the date of entry into force of this law stops by right for six months from the date of entry into force of this law.

Art. 5. – During the period of suspension penalty fee or other payments for prolongation of effective period of the credit agreement or loan agreement will not be calculated and levied.

Art. 6. – In 30-day time from the date of entry into force of this law under the threat of loss of the rights provided by it the debtor notifies creditors on case of damage of crops and refers to applicability of Article 4 provisions to it. The notification is performed by means of written means of communication (in a free form) with application of the list of all creditors falling under operation of the law with indication of debts to each of them, and also documents confirming compliance to the requirements provided by Items a) and b) Article 3.

Art. 7. – Suspension of payment obligations, stipulated in Article 4, for the periods exceeding six months, and also review of these obligations can be performed by agreement of the parties by initiation by debtors of negotiations with the creditors with the subsequent conclusion of supplementary agreements to agreements, stipulated in Item and) Article 3.

Art. 8. – In departure from provisions of the Civil code No. 1107/2002 in case of suspension of payment obligations capitalization of the percent which are due about day of entry into force of this law is allowed. The capitalized debt is subject to payment by installments during the remained period before prolongation of repayment period of credit/loan after the suspension period.

Art. 9. – The commission for review of conditions or suspension of credits/loans for the purpose of this law does not exceed one percent from the cost of the suspended obligation.

Art. 10. – The repayment period of financial guarantees, the loans granted through Fund of guaranteeing is prolonged by the public organization "Organization for Development of Entrepreneurship" guaranteeing the credits requested by debtors stipulated in Article 3, on the same conditions for the term equal to the term of prolongation/review of terms of credit, but only till December 31, 2025 provided that the credit was obtained about day of entry into force of this law.

Art. 11. – The debtor whose payment obligation was suspended based on this law is forbidden to make without notice creditors alienation of the assets constituting its property during the suspension period.

Art. 12. – Creditors shall within 30 calendar days from the moment of obtaining consider the application of the debtor for review of conditions or suspension of the payment obligation issued according to Article 7 for the periods exceeding six months.

Art. 13. – This law becomes effective from the date of its publication in the Official monitor of the Republic of Moldova.

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