France to provide €2 bln in zero-interest loans to farmers after heatwave

France ​will provide up ‌to €2 billion ($2.24 billion) ​in zero-interest loans for farmers after this summer's record heatwaves and ‌droughts ravaged crops and pastures, the agriculture ministry said on Thursday.

The measure, designed to help farmers purchase fodder, fertilizers ‌and other essential supplies, comes on top of ‌a€1.3 billion emergency aid package announced early last month. Several banks have already begun offering special "drought loans" at reduced interest rates of ⁠around 2.5%. ​Under the ⁠new scheme, the government will cover the interest payments.

"The government will ⁠introduce the equivalent of zero-interest loans by covering the remaining ​interest itself, for an outstanding loan balance of €2 billion, ⁠to enable farmers to purchase fodder and other inputs, amongst ⁠other ​things," the ministry said in a statement. The plan, which also includes technical measures to ease the financial ⁠strain on farmers, comes as the government faces politically sensitive negotiations ⁠over ⁠next year's budget ahead of next year's presidential election.

($1 = 0.8940 euros)