Government enlists productive credit at 5% of up to $20,000 for the tourism sector

The loans at 1% interest and a 30-year term that the Government delivers will enter a new phase when this program is one year old, which closes in 2022 with 58,900 loans granted for $162 million to small entrepreneurs, artisans, farmers and women, who they received up to $5,000 for their projects.

Thus, in January 2023 a new phase of the 1×30 credit for the fishing sector will begin, for which the State portfolios will subsidize the interest rate. This credit is aimed at natural persons, through the registration of their productive activity, with a maximum amount of up to $5,000 and a term of up to 30 years, BanEcuador indicated.

Additionally, this entity is articulating actions to create the 5% Productive Credit, for which $100 million is expected to be allocated. Those who access this financing may be benefited with amounts ranging from $5,000 to $20,000.

In this regard, the president of the board of directors of BanEcuador, Mauricio Salem, indicated: “Now, in January, we started with the Ministry of Tourism with cheap credit, which is credit of 5% up to 10 years, which is part of what The president offered social organizations in the month of June, which is a 5% loan for up to 10 years, which is the second phase, because the first, 1%, was from $500 to $5,000; this is from $5,000 to $20,000.”

BanEcuador’s 1×30 credit gains ground among women and youth

Since January 2022, when the 1×30 loans began, until the end of this year, 58,900 credit operations have been approved. 82%, which exceeds 49,900 loans, have been granted to the sector related to the Ministry of Agriculture and Livestock; 17%, to activities linked to the Ministry of Production; and 1%, to the Ministry of Economic and Social Inclusion (MIES).

Among the provinces with the highest rate of placements are Guayas, with more than $17 million delivered; Los Ríos, with more than $14 million; and Manabí, with more than $13 million. By credit destination, by gender, there are 25,000 women who accessed 1×30 credits throughout the country, for an approximate amount of $68 million; while the men agreed to an amount of $64 million, according to the latest data provided by BanEcuador.

In these credits and in all financing lines, the regime has placed 189,749 operations so far in its mandate for an amount greater than $761 million, which BanEcuador considers has allowed the reactivation of economic and agro-productive activities in Ecuador.

Longer term to settle debts: Financial relief will be in force until March 31, 2023

This public banking entity is also carrying out the financial relief measures agreed upon at the banking dialogue table after the national strike that the country experienced last June, to restructure or refinance debts. This aid should be applied until December 31, 2022; but, at the request of BanEcuador, the Financial Policy and Regulation Board extended the term until March 31, 2023. With this new term, they hope that “the 26,000 BanEcuador clients with debts of up to $20,000 will be able to restructure or refinance their obligations , and improve their situation,” Salem added.

The extension of the term to access the financial relief mechanism for three more months seeks for clients to be able to comply with their obligations and that this allows to continue with the reactivation of the productive sectors, and also to reduce the unproductive portfolio and delinquency rate . (YO)