El Salvador Activates Credit Line for Coffee Growers

The Multi-sector Investment Bank announced the allocation of $ 50 million to finance the coffee sector.

Friday, February 4, 2011

The funding will be made through the BMI Hotline for Avio Café Financing: 2011-2012.

This funding is intended to continue contributing to the revival of the coffee sector and generate benefits for El Salvador, including employment in rural areas and a positive impact on the environment.

According to the president of BMI, Dr. Ricardo Mora, funds and conditions attached to the line of credit will be arranged through the entire country's banking system at an interest rate of 8.75% with the following conditions:

a) Deadline: until September 30, 2012.

b) Users: farmers, cooperatives and coffee producers associations, producers and exporters.

c) Maximum amount of funding per quintal: for traditional coffee farm phase, $ 45.00, and in collection phase $ 25.00, for a total of $ 70.00. For specialty coffee farm phase, $ 52.00, and in collection phase $ 28.00, for a total of $ 80.00.

d) Guarantees: pledge over the crop to be financed in case of producers; first irrevocable payment order in favor of IFI, PROGARA coverage up to $ 45.00/qq or $ 52.00/qq on “oro uva” type, depending on whether it is traditional coffee or specialty coffee, and other requirements financial institutions may deem necessary.

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More on this topic

Nicaragua: Funding for Coffee Growers

January 2016

The Ministry of Finance announced that $20 million will be made available for lending to the sector, with priority being given in the first stage to producers with planted areas measuring between 3 and 20 fields.

The National Commission for Transformation and Development of Coffee Plantations (Conatradec) announced that funding will be for up to 7 or 8 years, with a three year grace period, at an interest rate which will be discussed next week, along with the financing plan for coffee growers.

Credit for Coffee Producers Growing in El Salvador

June 2011

The rise of grain prices internationally is an incentive for investment in the sector.

In just four months, financing in the country’s coffee sector has grown by over 150% compared to the same period in 2010.

One of the main reasons seems to be the excellent performance of the grain abroad. Due to high prices and the high demand in the market, producers are being seen as more credit worthy.

$50 Million For Salvadoran Coffee Industry

February 2010

The funds by BMI (Multilateral Investment Bank), are intended to reactivate coffee production.

A special credit line was created for coffee growers, producers, packers and exporters, as well as coffee societies and associations.

From Elsalvador.com: “$50 million will be available in credits across the entire financial system, at 9% interest rate, and maturing on September 2011”.

$17 Million for Economic Development in El Salvador

February 2009

Businesses which operate in the northern zone of the country can access lines of credit in order to invest in or expand their operations.

Daniel Choto writes in an article on Elsalvador.com: "Starting now, businesses interested in investing in or expanding their projects in the northern zone of the country have a new ally, the Northern Development Trust Fund (Fidenorte, the Spanish acronym) due to $17 million allocated yesterday by Fomilenio and Banco Multisectorial de Inversiones (BMI).

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