This week, at the initiative of congresswoman Karol Paredes Fonseca, of the Acción Popular caucus, the bill for Law No. 01485/2021-CR, which establishes the extinction of the Agricultural Financial Rescue (RFA) programapproved by Emergency Decree No. 059-2000 and its amending regulations, so that the debts corresponding to the bonds issued by the State for the implementation of said program are extinguished.
The project indicates that with its enactment, the Development Finance Corporation (Cofide), as the entity in charge of administering the bonds of the RFA program, would be allowed to release guarantees and return properties to farmers covered by the law.
The Agricultural Financial Rescue Program It was created with the purpose of refinancing the debts that had been contracted with private banks by farmers affected by the El Niño phenomenon.which occurred in the years 1997-1998, for which the Ministry of Economy and Finance was authorized to issue bonds for the implementation of said program.
It is explained that during the 22 years of validity of the program, 100% of the portion of the debt with private banks has been cancelled; however, the debt corresponding to the bonds managed by Cofide remainsby medium and small farmers, who in turn cannot recover their properties granted as collateral to private banks.
The document specifies that in previous legislative periods four similar proposals have been presented and that they appeal to the same end.
Source: Larepublica
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