Agribusiness: Debt Readjustment Plans

In Costa Rica, legislative initiatives are being prepared to restructure the credit portfolios of small and medium agricultural producers affected by climate phenomena.

Friday, December 6, 2019

One of the initiatives includes the purchase of the credit portfolio to readjust the debts of producers affected by climatic phenomena and who are unable to pay. The credits that would be applied in this case would be those of $35,000 or less.

The other bill seeks to authorize public banks to readjust the delinquent loans of small agricultural producers, for a maximum amount of $31,000.

You may be interested in "Crops in Central America: Main Figures in 2018"

Juan Rafael Lizano, president of the National Chamber of Agriculture and Agroindustry (CNAA), told Nacion.com that "... these initiatives must be undertaken with restraint and care. A plan of this type must also have the component of reactivation, that is, credits to restart production and, with it, pay off the restructured debt. The danger is that after the readjustment of the debts, they will not be paid again and then the cancellation will be chosen."

For Yorleny León, deputy of the National Liberation Party, these projects are not only "... to deal with the debt situation, but also to allow the producer to improve his cash flow in order to reactivate the farm."

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