Ziraat Bank postpones loan debts to earthquake-stricken farmers

The credit debts within the scope of the decisions regarding the use of low-interest credits by Ziraat Bank and Agricultural Credit Cooperatives (Agricultural Credit) of agricultural producers in some provinces damaged by the earthquakes centered in Kahramanmaraş have been postponed for 1 year. The Presidential Decree regarding the subject was published in the Official Gazette. The decision will benefit real or legal person producers, economic enterprises, unions and cooperatives who are registered in the Farmer Registration System (ÇKS) or other registration systems of the Ministry of Agriculture and Forestry and who continue their production activities and whose agricultural products-assets (plantings, products, animal assets, business facilities, barns, greenhouses and the like) were damaged due to the earthquakes centered in Kahramanmaraş on February 6 in Adana, Adıyaman, Diyarbakır, Elazığ, Gaziantep, Hatay, Kahramanmaraş, Kilis, Malatya, Osmaniye and Şanlıurfa and their districts. Accordingly, damage assessment commissions will be established in the provinces and districts for the purpose of damage assessment. The commissions will include representatives from relevant public institutions and agricultural chambers. Commission decisions will be taken by majority vote. The damage assessment commission decisions must be prepared within 3 months at the latest. Agricultural credit debts within the scope of decisions regarding the use of low-interest loans provided by Ziraat Bankası and Tarım Kredi, which have not yet matured as of February 6 (inclusive) but will mature within one year, for which an application is made within 1 year for those with a maturity of more than 1 year, or which are in the waiting period from their maturity, will be postponed for one year from their maturity dates by accruing interest in accordance with the relevant legislation. Transactions of those with a debt of 250 thousand liras and below will be carried out without application. The postponement transactions regarding the loans of those with a principal amount of 250 thousand liras and below of the credit debts defined within the scope of the decision will be carried out ex officio by the relevant person without the need for an application to the bank or Tarım Kredi and any damage assessment. Those whose credit debts are 250 thousand 1 liras or more in principal, whose agricultural products/assets (plantings, products, animal assets, business facilities, barns, greenhouses, etc.) have suffered at least 30 percent or more damage, and whose situations have been determined by provincial or district damage assessment commissions, will need to apply to the bank or Agricultural Credit, depending on their relevance, for their postponement requests to be evaluated. Accordingly, those whose debts are within the waiting period from their due date as of the date of the damage assessment commission decision or those whose debts have been transferred to "receivables accounts to be liquidated" after the effective date of this decision, will apply in writing to the bank or Agricultural Credit, depending on their relevance, within 1 month from the date of the damage assessment commission decision. Those whose credit debts have not yet matured but will expire within 1 year from the date of the damage assessment commission decision will apply in writing to the relevant party within 1 month from the date of the maturity. If the maturity date of the loan debts has not yet come but the maturity date exceeds one year, they will apply to the bank or Agricultural Credit in writing within one year, and their debts will be postponed for one year starting from the application date, and interest will be accrued. All installments in investment loans will be postponed No interest will be applied to agricultural loan debts postponed by the Bank and Agricultural Credit from their maturity date during the postponement period. All unpaid installments in investment loans will be postponed for one year, but the interest-free postponement will only be applied to the first installment, and the current interest rate and discounts will continue to be applied to other installments. The income losses of the Bank and Agricultural Credit arising from the postponed loans will be calculated based on the current agricultural loan interest rate applied by the Bank to agricultural loans. The Bank and Agricultural Credit will be able to determine more than one installment for the producers within the framework of their own practices for the first year. Loans structured within this scope will be excluded from the income loss application at the end of the first year. The Bank and Agricultural Credit will submit information regarding the loans postponed within the scope of the decision and the estimated income loss amounts calculated until the end of the term to the Ministry of Treasury and Finance on a monthly basis in order to make projections. After the finalized income loss amounts are submitted to the Ministry, payments will be covered from the appropriation allocated for this purpose to the relevant year's budgets by the Ministry of Treasury and Finance. No follow-up will be initiated Regarding loans within this scope, no follow-up will be initiated from the date of the damage assessment commission's decision until the end of the application period, or until the end of the postponement period in case the debt is postponed. The decision entered into force as of February 6.