Agriculture needs RD$31 billion

[NewsWhore]

The Dominican Republic farming sector needs RD$31 billion each year to feed the local population and maintain current export levels. Unfortunately, the reality is that the sector only has access to RD$12 billion in credit within the local banking establishment and RD$7.5 billion through the Agricultural Bank, Banco Agricola. As a result of this situation, farmers and government officials are suggesting the creation of a guarantee fund. Paino Abreu Collado, the administrator of Banco Agricola and Jose Ramon Peralta, the head of the Agro-Business Board (JAD) addressed the issue during their speeches at the presentation of a plan called "A System for Promoting and Financing Farm and Forestry Production in the Dominican Republic." Essentially, the idea is to restructure the Banco Agricola and equip it for handling loans to small farmers. The next step is to create what is called a "second tier bank", one that does not deal with individuals but rather with other financial institutions, and whose job would be to finance the farming sector's long term needs. A final entity would be an insurance company to support small, medium and large-scale farmers. The proposal will depend on financial support from international sources.

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