Guatemala: $100 million Available to Address Rust

The trust has become operational which gives loans with a term until 2026 and interest at 2% per year for smallholders and 3% for medium and large producers.

Monday, June 16, 2014

From a statement issued by the National Coffee Association of Guatemala:

With the amendment of the public deed which created the "Trust for financial support for producers in the coffee sector" with assets of $100 million; the National Coffee Association (Anacafé) can say: mission accomplished.

On May 15, the Trust's Technical Committee approved the amendments to the regulation on credit and operations so that coffee farmers around the country can have access to financing in the form of loans.

The new provisions allow the term of the trust to be extended until 2026 and establish an interest rate of 2% per annum for small producers, and 3% for medium and large producers, also revised was the maximum amount of credit to be awarded. Loans may be granted for the following uses: crop diversification, agro-processing, trading, debt restructuring, maintenance and harvesting of coffee and coffee plantation renovation.

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More on this topic

Costa Rica: Conditions For Loans From Coffee Trust

January 2014

While everyone waits for the trust to manage to complete its last administrative tasks, it has been revealed that the maximum interest rate to be charged for its loans will not be more than 6%.

The $40 million Coffee Trust which was approved by the Costa Rican Congress last year, and is awaiting final approval from the Comptroller's Office, will open four credit programs with maximum interest rates of 6%.

Guatemala Extends Coffee Trust by 10 Years

October 2013

Loans using resources from the trust will have a yearly interest rate of 2% for micro and small producers and 3% for medium and large producers.

From a press release issued by the Congress of Guatemala:

With a qualified majority and under a National Emergency status, the Congress has approved Law Decree 12-2013 authorizing the extension of the contractual term of the Trust for Coffee known as "Fideicomiso apoyo Financiero para los Productores del Sector Cafetalero Guatemalteco" for 10 more years" , meaning that its term will expire on October 23, 2026.

Extension of Coffee Trust in Guatemala

November 2012

The term of the trust, which expires in 2015 – will have to be extended so that the $37 million that is available can be loaned to producers for the renovation of coffee plantations.

S21.com.gt reports that "Because of the crisis faced by the sector in the country's coffee production in 2001-2002, the government at that time created a trust fund of $100 million, which was to be administered by the central bank, and would serve to provide credit to farmers to boost their crops. Regarding this, the National Coffee Association (Anacafe) believes that reviving the trust and extending its expiration date could save the sector. "

Guatemala: Coffee Growers Get Credit

July 2011

The Trust for financial support for the coffee sector has made $38 million available for financing the sector.

The coffee price crisis of 2002, which affected small producers, was the reason for the creation of the trust, which has since provided funds to farmers for different situations that the industry has faced.

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