HeavyFinance adds new legal requirement for borrowers in Poland

European agricultural lender HeavyFinance has added a new legal requirement for its borrowers in Poland, which will expedite the recovery process if loans go into default.

HeavyFinance is now mandating debtors in the country to provide a statement on voluntary submission to enforcement. It said this will accelerate the debt recovery process by enabling creditors to bypass lengthy court procedures.

The statement on voluntary submission replaces a court judgement and can become an enforcement order.

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HeavyFinance said that the change will also enhance the overall security of those investments are they are now backed by a legally enforceable statement.

“Investors can benefit from a more efficient recovery process,” said Aldona Micė, head of risk and recovery at HeavyFinance.

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“When a farmer defaults on a loan, investors can rely on the enforcement clause obtained under Article 777 to initiate the enforcement process directly through a bailiff. This direct route reduces the time and effort typically required to secure a court judgement.”

The additional requirement has been applied to all new loans on HeavyFinance’s platform since 20 June.

It is also being applied to the majority of farmers who missed a loan repayment instalment for more than 90 days and fell into arrears.

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