This is a subscriber-only article
Farmers who need a break on loan repayments must make sure they avail of it and avoid falling into the non-performing loans category, IFA farm business chair Rose Mary McDonagh has said.
McDonagh has welcomed an extension of the deadline for payment break applications for those whose income has been impacted by COVID-19.
“The postponement to 30 September, from the end of June, for first-time applicants for a loan break is much more realistic and practical,” she said.
“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.”
Loans
While payment breaks can assist in the short-term, the IFA has urged the incoming Government to quickly legislate for the COVID-19 Credit Guarantee Scheme and the second phase of the Future Growth Loan Scheme.
Both will be open to farmers, but the IFA said it was imperative terms and conditions as well as eligibility criteria were established.
“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,” McDonagh concluded.
SHARING OPTIONS: