Small farmers in Peru will be able to access credit with an average annual interest rate of 12.44%, after the Government approved an injection of S/100 million to the Fund for the Financial Inclusion of Small Agricultural Producers (FIFPPA), reported the Ministry of Agrarian Development and Irrigation (Midagri).
The injection, materialized by the Ministry of Economy and Finance (MEF) through Supreme Decree No. 041-2024-EF, will allow granting an incentive to small agricultural producers to access credits from the Agricultural Bank (Agrobanco).
The head of Midagri, Jennifer Contreras, explained that the transfer is due to the difficulties that small producers suffered in 2024 due to the presence of natural phenomena, “but now with the actions promoted by the agriculture sector, the aim is to recover national agricultural production. “.
The FIFPPA incentive promotes financial inclusion because it is aimed at producers who have less than 10 hectares. It also promotes a good payment culture, a situation that is manifested in a very low delinquency rate at the Agrobanco: between 4% and 5% each year.
“If today small agricultural producers obtained loans from the Agrobank at an average of 30%, now they will be able to count on loans at an interest rate of an annual average of 12.44%. This will undoubtedly facilitate the reactivation of activities in agriculture,” said Contreras.
It is estimated that with this injection of resources, around 55,800 new loans will be leveraged, equivalent to S/855 million, “which is the total amount of loans that the Agrobanco will disburse, approximately,” added the minister.
In this way, Midagri continues to implement measures to boost food production in the 2023-2024 agricultural campaign, not only with the provision of financing lines but also with technical assistance, business plans, technological innovation, water infrastructure, access to markets, among other services.
Source: Larepublica
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