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Debt consolidation, the Veneto region intervenes in favor of farmers

The Veneto Region has decided to intervene alongside companies in the agricultural sector in difficulty with the amortization plan launched with the banks, giving rise to a plan that allows debt consolidation for companies that have invested in recent years.

Debt consolidation

Debt consolidation

Also the agricultural enterprises of the Veneto Region can access the debt consolidation, that is that particular financial operation that allows to extinguish the various debts accumulated previously with a single monthly payment. To regulate the granting of subsidies on the loans that have been turned on by the farms of the region is the new regulation, drawn up in favor of those that, over the last few years, have obtained short-term loans from banks aimed at making investments in the sector primary production and processing and marketing of agricultural products.

The provision of the Veneto Region was made possible by the introduction of Article 3 of the Regional Law No. 16 of 7 August 2009, which had the specific purpose of helping agricultural companies in the financial emergency phase due to the continuing economic crisis. The condition to access the facilities, however, having maintained investment strength, represents a choice that aims to reward companies that have nevertheless maintained a certain ability to project themselves into the future in spite of a situation still marked by uncertainty.

Transformation of short-term debts

Transformation of short-term debts

The facilitations provided for, consist in particular in the transformation of short-term debts, those that should be repaid within eighteen months, into medium-long term debts, or by expanding the repayment terms from five to ten years. In order to access the plan, a limit was set, both minimum and maximum, ranging between 15 thousand and 75 thousand USD in the case of investments in the primary production sector, with a maximum threshold of the contribution set at 7,500 USD in three years, or between 25 thousand USD and 200 thousand USD, in the case of debts incurred for investments made in the processing and marketing of agricultural products with a maximum contribution threshold of up to 200 thousand USD over a three-year period.

Applications to access debt consolidation prepared by the Veneto Region must be submitted to Veneto Group., Through the bank where the financial transaction took place, and have a limit on the exhaustion of the resources provided. It is therefore a far-reaching initiative aimed at supporting farms at a time when the Northeast is struggling with deflation and with a credit squeeze that is putting the productive apparatus in obvious difficulty.