Agro bank to lose RD$272.8M yearly on 12% to 10% rate drop on farm loans

Santo Domingo.- The State-ownedagro bank Bagricola- will lose out on RD$272.8 million annually with a rate ratchetedback from 12 to 10% for the farm sector, as president Danilo Medina instructed.

Bagrícola administratorCarlos Segura on Tuesday said the reduction will lower production costs in the agrosector and allocate more funds to invest in new crop-improvement technologies.

He said the measurepaves the way to achieve the goal of one tourist per Dominican in the nearfuture and also provides the school breakfast to 1.8 million students startingnext year.

In that regard, Agricultureminister Angel Estevez said Government has allocated around RD$4.5 billion to Bagrícolato improve farm production.

President Danilo Medinain one of his surprise visits on Sunday ordered the rate reduction on farm loans,from 12 to 10%.

Estevez added that rateson agro sector loans were as high as 24% when Medina took office in 2012.