EPN unveils loan plans for farmers
Gov’t will allocate $3.4 billion for agricultural producers
BY MAURILIO SOTO
The News
President Enrique Peña Nieto said his administration will put into effect measures in favor of the agricultural sector. In 2014, the federal development bank will loan 44 billion pesos ($3.4 billion) to agricultural producers because this sector is key to building a prosperous country, he said.
These measures include preferential tariffs, less requirements to obtain credits and installments for up to 15 years. Peña Nieto said that starting yesterday, Rural Finance will become the National Finance for Agricultural, Rural, Forestry and Fisheries Development. This institution will launch a program that will offer credit interest rates of less than 10 percent annually, which will save producers up to 40 percent as current interest rates are at 14 percent in average.
Peña Nieto said that the new financing institution will also give credits of up to 230,000 pesos with a preferential annual tariff of 7 percent for small producers and 6.5 percent for female agricultural workers in order to boost productivity.
The federal government abuses small producers, above all female farmers, said the president.
“This new development bank institution does not require producers to leave their land and home as guarantee to receive a loan. The new institution allows producers to leave their produce as credit guarantee.
“This economic support will challenge current public funding institutions,” said Peña Nieto.
The federal government will give the necessary guarantees to private intermediaries so that these institutions can provide producers with direct loans on the same preferential terms.
Peña Nieto was the guest of honor at the signing of this financial agreement between the National Finance, the National Governors Conference and Mexican Bank Association.
This agreement extends the same guarantees for private banks and will allow long-term financing with terms of up to fifteen years.
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