Gov¡¯t, ruling party divided over bill on farmers' debt relief

The government and the ruling party are divided over a plan to legislate a special law on farmers¡¯ debt relief.

Rep. Lee Hae-Chan, the chief policy maker of the ruling Millennium Democratic Party (MDP), Agriculture and Forestry Minister Han Kap-Soo and Maritime Affairs and Fisheries Minister Roh Moo-Hyun held a meeting to deal with the issue on Thursday but failed to reach a conclusion. The MDP argued that a special law should be enacted to relieve farmers' debts but the government insisted that a special government-level measure would be enough.

The ruling party reiterated the need for a special bill to secure continuity in the policy to solve the problem of farmer's debts. But the government said that if it enacts a special law under the pressure of public opinion, it would be pressed to do the same whenever other social issues arise.

Discussing the plan to allow repayment in installments for loans from policy funds, the MDP called for the repayment over five to seven years with a two-year grace period, but the government opposed the grace period.

Currently, the government applies the high interest rate of 11 to 12 percent on the 18 trillion-won agricultural financing fund. The party suggested that the interest rate be lowered to 6.5 percent on a fund of 7 trillion won but the government insisted that the fund size for lower interest rates should be 4 trillion won.

Chung Sye-Kyun, a high-ranking official of the MDP, said that the party will stand firm in its position of enacting a special law on the relief of farmers' debts.

Yoon Young-Chan yyc11@donga.com