The agricultural sector asked the BCU for credit facilities in view of the forecasts of a meager economic balance

The agricultural sector asked the BCU for credit facilities in view of the forecasts of a meager economic balance

The Rural Federation is already anticipating a meager economic balance for the year with conversations with the Central Bank of Uruguay (BCU) regarding possible “considerations” for the sector regarding access to credits Yet the financial center.

He agricultural exercise 2023/2024 was not the best for most rural producers, fully impacted by the drought the country suffered and the residual effects that this generated on the harvests. Now, the 2024/2025 financial year does not promise to be, either, of exceptionally positive results, on the one hand due to the floods and excessive rains that occurred during the first months of the year; but mainly due to low temperatures commodity prices in international markets, which are projected not to rebound in the short or medium term.

With this scenario, the Rural Federation issued a statement asking for “consideration” from the BCU regarding the categorization of the agricultural sector and its activities with banking entities. And on Monday he met with authorities of the Superintendence of Financial Services of the Central Bank.

At the meeting – which the union’s board attended together with the economist and honorary advisor Milton Ramallo and the accountant Juan Manuel Machado—, There was talk about “the categories and how they change in the credits”, as commented by the president of the Rural Federation, Jorge Andres Rodriguez.

“The function of the Central bank, At the level of the Superintendency, it is to take care of the risk of the financial market and savings, and in the credit rating They work with a lot of information that they receive from different systems,” said the agricultural union representative, based on the information that was given to them at the meeting, the first held between that area of ​​the monetary entity and an institution that is not of a financial nature.

The ruralists’ request to the BCU

Within the framework of the meeting, the Rural Federation He told the Superintendency of Financial Services that the economic results of agricultural companies are conditioned by “exogenous or extra-company situations that affect them, without having thought that it would be like that.”

“We think that the results of this exercise will be very meager, and that is why we are looking for a way to provide some consideration for producers who need credit to get through this moment,” Rodríguez explained to El País.

“It was a good meeting, the important thing is that they know first-hand the situation of the producer,” concluded the president of the union, without revealing possible results or agreements based on the claims.

It should be remembered that the relationship between the agricultural sector and the BCU has been tense for several months around the issue of what, from the agricultural sector, they point out as exchange rate lag and that, from the monetary authority – although they admit the misalignment of the exchange rate – they do not understand it as a priority or necessary situation for intervention.

Source: Ambito

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