23 Jun 2020
EXTENSION OF DEADLINE FOR PAYMENT BREAK ON LOANS IMPORTANT FOR FARMERS HIT BY COVID-19RCOVID-19, Farm Business & Credit
The Chair of the Farm Business Committee Rose Mary McDonagh has welcomed the extension of the deadline for payment break applications for those whose income has been impacted by COVID-19.
“The postponement to September 30th from the end of June for first-time applicants for a loan break is much more realistic and practical.”
“In recent meetings with the banks, I have outlined that the impact on income is delayed for some farmers. The pinch is only being felt now, or certainly will be in the next few months. Farmers who need this break must make sure they avail of this opportunity and avoid falling into the non-performing loans category,” she said.
Whilst these payment breaks will assist in the short-term, IFA is urging the incoming Government to urgently legislate for the Covid Credit Guarantee Scheme and the second phase of the Future Growth Loan Scheme to support famers. Whilst both are open to farmers, it is imperative to establish the terms and conditions, as well as eligibility criteria.
“Farmers are going to have increased costs, as well as credit and cashflow problems due to this crisis. These schemes must be low-cost and be open to farmers across all sectors to assist with working capital, investment and credit issues,” Rose Mary McDonagh concluded.