During 2022, 4,445 million dollars were placed in the national financial system in the sectors of agriculture, livestock, forestry and fishing. Of that, more than half of the new loans were from private banks.

Thus, banks approved 71% of loans to the agricultural sector or the equivalent of 3,168 million dollars in 2022. This means that seven out of every 10 dollars placed in new loans for that segment were approved by private banks.

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Meanwhile, 22%, or $975 million, comes from cooperatives; 6% or $276 million, by public financial institutions such as BanEcuador, Corporación Financiera Nacional and Banco de Desarrollo del Ecuador, and 1% ($27 million) by mutual societies.

The agricultural sector includes the exploitation of natural plant and animal resources, in addition to the activities of breeding, breeding and reproduction of animals, exploitation of wood, among other related activities.

New loans from private banks to the agricultural sector in 2022 achieved a growth of 30% ($725 million more) compared to the amount placed in 2021. In addition, there is an increase in the delivery of new loans compared to 2019, which exceeded 75% ( an additional 1,252 million dollars), that is, it exceeded the levels before the pandemic.

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Meanwhile, the number of operations for this sector in 2022 was 88,000, which represents an annual growth of 12% and 35% respectively compared to 2019. production chains and the consequent creation of jobs”, mentions Asobanca (Association of Private Banks of Ecuador).

What activities were the loans for?

According to Asobanca, new bank loans granted to the agricultural sector in 2022 are primarily concentrated in the following three activities:

provinces

The main destination of agricultural loans was the province of Guayas with 55% ($1,742 million), followed by Pichincha with 11% ($362 million), Manabí with 9% ($283 million) and El Oro with 8%, or the equivalent of $258 million . These four provinces make up 83% of the total number placed.

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“The support provided by private banks to this important sector of the economy enables multiple effects on other economic activities. In this way, according to the Tax Administration (SRI), the agricultural sector achieved sales of 19,357 million dollars in 2022, which represents an annual growth of 13%, while its contribution to tax collection reached 642 million dollars, i.e. 36 percent more than in 2021. “, said Asobanca.

Employment

New loans from private banks supported the creation of more jobs.

As of December 2022, the agriculture, animal husbandry, forestry and fishing sectors employed 2.5 million people, equivalent to 31% of the employment created in the country as of December 2022. Of this total, 81% are jobs performed in rural areas sector and 19% in the urban sector.