One-year moratorium on all farm loans

THIRUVANANTHAPURAM: Finance Minister K M Mani has said the State Government will write off agricultural loans taken by those farmers who have committed suicide in the state.The Finance Department has also decided to impose a one-year moratorium on repayment of all the agricultural loans.The State Government also decided to declare Wayanad a ‘distress-stricken’ district. The new moratorium will be applicable to all agricultural loans taken from commercial and nationalised banks. Earlier, the moratorium was declared on all loans disbursed by the State Government. The Finance Minister was speaking after a special meeting called by Chief Minister Oommen Chandy, with the State-Level Bankers’ Committee here on Wednesday.The meeting also decided to streamline the agricultural loans after the moratorium period. The short-term loans will be converted into mid-term loans and mid-term loans into long-term loans.Representatives of the Bankers’ Committee informed the meeting that it would require the permission of the Reserve Bank of India to write off all the outstanding interest of farmers who have committed suicide.