In Panama, President Cortizo sanctioned the Law that establishes that from 2024, 100% of the resources retained by the Special Interest Compensation Fund will go to the agricultural sector.
The National Assembly approved a bill that establishes that by 2024, 100% of the resources retained by the Special Interest Compensation Fund will go to the agricultural sector.
The Special Interest Compensation Fund (Fondo Especial de Compensación de Intereses, FECI) is fed by the 1% tax levied on the granting of all loans exceeding five thousand dollars in both commercial and consumer banks.
Mortgage and personal loans continue to determine a significant part of the 5% increase in domestic credit to the private sector, recorded between July 2017 and the same month in 2018.
More recent data from the Superintendence of Banks, up to the seventh month of the year the credit portfolio of the private sector reached $52,607 million, which is equivalent to an increase of 5.4% with respect to the $49,921 million reported up to July 2017.
At the end of last year the banking system's loan portfolio ended up with a balance of $66,117 million, just 1.4% more than the $65,187 million reported at the end of 2016.
The Comptroller General of the Republic reported that the moderate increase is partly explained by a contraction recorded by the external sector's portfolio, as between 2016 and 2017 it dropped from $16,557 to $14,560, which is equivalent to a 12% drop.
Despite the decline in the sector, the balance of agricultural loans is growing and April 2015 amounted to $1,448 million, with BNP, Global Bank and Multibank granting the most loans.
Figures for April 2015 show that the National Bank of Panama (BNP) has a balance of agricultural loans of $445 million, Global Bank with $300 million, Multibank with $162 million and Banistmo $110 .
A bill intends to extend the system of preferential interest rates on bank loans for productive activities in the agricultural sector.
From a statement issued by the Assembly of Panama:
The Agricultural Affairs Committee has been exchanging views with officials in the primary and banking sectors on a bill that establishes discounts in the interest rate of loans to local producers in the order of $500,000.
An adequate legal framework is needed for the healthy and steady development of institutions engaged in microfinance.
The Association for Research and Social Studies (ASIES) has published a study on the essential institutional strengthening of microfinance in Guatemala, with its own data and references it reports from the Secretariat for Economic Integration (SIECA) on "The Importance of the Micro Financial Sector in Central America ".
Access to credit at 0% interest for the agro sector, announced in the plan for support to the sector, only applies to certain agricultural crops and dairy farming.
The program for granting interest-free loans for agriculture, which runs until December 2016, has several conditions and limitations as it does not apply for any type of investment or activity in the sector.
The Agricultural Development Bank has obtained a $58.2 million loan which will be dedicated to domestic producers for the fiscal year 2014.
Prensa.com reports: "The figure is higher by $3.4 million, compared to 2013, it comes from the budget of $89.4 million which was presented to the National Assembly by Rigoberto Amaya, manager of the Agricultural Development Bank (BDA)".
The Outlook for Agriculture and Rural Development in the Americas: A perspective on Latin America and the Caribbean 2011-2012.
ECLAC, FAO and IICA press release:
San Jose, Costa Rica, October 21 (ECLAC/FAO/IICA). Despite the current context of volatility and high food prices, in the long term, the agricultural sector in Latin America and the Caribbean (LAC) will be able to take advantage of the opportunities afforded by having available land - albeit concentrated in a few countries- a relative abundance of water, biodiversity and well-educated human resources.
The Outlook for Agriculture and Rural Development in the Americas: A perspective on Latin America and the Caribbean 2011-2012.
ECLAC, FAO and IICA press release:
San Jose, Costa Rica, October 21 (ECLAC/FAO/IICA). Despite the current context of volatility and high food prices, in the long term, the agricultural sector in Latin America and the Caribbean (LAC) will be able to take advantage of the opportunities afforded by having available land - albeit concentrated in a few countries- a relative abundance of water, biodiversity and well-educated human resources.
The Agricultural Development Bank has allocated funds to finance the planting of rice this year around the country.
The General Manager of the bank, Rigoberto Amaya, pointed out that it has processed about $3 billion in loans.
The original presentation deadline of March 30 has been extended and the manager "has asked rice producers to submit their requests as soon as possible in compliance with all requirements under the BDA in order to avoid delays in disbursement of checks, as has happened with other products, such as onions. ", noted an article in Prensa.com.
The Agricultural Development Bank (BDA) is making procedures more flexible in order to expedite loans to the agricultural sector.
The financial institution will lend up to $10 billion with an interest rate of 2% in regional fairs, and will expedite the necessary paperwork to formalize the credit.
An article by Aet Elisa Tejera in Prensa.com notes: "Loans under $25,000 are now approved regionally, which will reduce delivery times for funding.