He Ministry of Livestock, Agriculture and Fisheries (MGAP) signed an agreement with the Banco República Oriental del Uruguay (BROU) so that farmer producers have access to preferential credits that allow them to finance water resources works and improve production equipment, after a strong drought whose effects are still felt in the sector.
The credit has a maximum limit of 2 million pesos per producer, with payment term and amount to be defined as appropriate. “These credits reconvert and improve competitiveness,” highlighted the minister. Fernando Mattos, in an initiative that adds to the benefits already contemplated within the framework of the agricultural emergency, which will continue until the end of the year.
Mattos He highlighted that this instrument “goes beyond all the others that were implemented for the drought and provides more structural credit support,” after leading the signing of the agreement, together with the undersecretary of the MGAP, Juan Ignacio Buffa; the general director of the Farm, Nicolás Chiesa; the president of the BROU, Salvador Ferrer; and the general manager of the financial institution, Mariela Espino.
In turn, the leader indicated that credits are essential in a sector where “greater productive efficiency is needed and coverage from all climatic hazards,” while he postulated that there be “more irrigation systems, more reservoirs, more alternative supply channels.” and, obviously, the renewal of the machinery.”
The details of the credits and their requirements
From the MGAP They specified that the beneficiaries of these credits to face the effects of the drought They will be companies, natural or legal persons, previous clients of the BROU or new clients, who meet the conditions established by the General Directorate of the Farm.
Among the requirements are being creditworthy, demonstrating payment capacity, having received the qualification of the Central Bank of Uruguay (BCU) of at least 2B, and not maintain debts before the Social Security Bank (BPS) nor the General Tax Directorate (DGI).
In turn, the maximum amount per beneficiary may not exceed 2 million pesos or its equivalent in dollars. Regarding the maximum payment term and amount of the installments, it will be defined according to the type of financing approved for each case.
Ferrer highlighted that the BROU It will offer the greatest number of financial solutions so that no agricultural producer ceases its activity and specified that the beneficiaries will receive the best risk category that the bank can offer, estimating an average amount for each producer of 700,000 pesos.
While, Buffa He stated that it is an instrument to enhance the farming sector, while Chiesa remembered that the Farm Guarantee Trust, constituted by 100 million pesos and guarantor of the agreement, it was generated by the president’s idea Luis Lacalle Pou.
Source: Ambito
