The Government on Monday stipulated that the
Business Support Fund for Farmers (FAE-Agro) will provide credit risk coverage until June 30, 2021, in order to maintain the dynamism of the economy and improve the living standards of small-scale farmers of family farming.
It should be noted that the Executive Branch issued extraordinary measures, in economic and financial matters, to promote the financing of small-scale farmers, who may be affected by the adverse international and local context, due to the spread of COVID-19, through credits that are designed exclusively for working capital.
These measures are intended to guarantee the 2020-2021 Agricultural Campaign for both temporary and permanent crops and the promotion of livestock activity, having an impact on the supply of food at the national level.
As is known, the FAE Agro fund stands at S/2 billion (around US$553.2 million) to provide financing lines to small-scale agricultural and livestock producers so that they can finance the agricultural season, taking into account the fund was going to expire on December 31, 2020.
Food supply guaranteed
In this way, in order to ensure the normal supply of food at the national level, credit risk coverage shall be granted by FAE Agro until June 30, 2021, and the period of validity for this coverage shall not exceed June 30, 2022.
The National Government's guarantee, mentioned in the regulation, only covers the corresponding percentage of the main remainder of those credits granted by the Financial System Companies (ESF) or Savings and Credit Cooperatives (COOPAC) to small agricultural producers, associated with the revolving credit lines granted for working capital purposes.
(END) NDP/JJN/RMB
Published: 12/28/2020