THE DEPOSIT AND CREDIT ACTIVITY OF INDIVIDUAL FARMERS IN POLAND DURING THE COVID-19 PANDEMIC

Abstract

The article aimed to assess the direction and strength of the impact of the COVID-19 pandemic on the deposit and credit activity of farmers in Poland. The research method was a comparative analysis of the value of farmer deposits and debt time series. The National Bank of Poland was the data source. The research shows that at the beginning of the pandemic, the NBP significantly eased monetary policy. As a result, interest rates in the economy were falling till August and then stabilized. Despite the decline, farmer bank deposits increased. Current deposits in PLN dominated. The drop in interest rates did not increase the farmers’ credit demand. Although the debt value climbed at the beginning of the pandemic, it next fell considerably. What is worth underlining is that the debt value trend was similar to such trends in the past. Short term debt decreased mostly, which proves that farmers tried to adapt in this way to the increased uncertainty of farming conditions.