Government receives more than 322 million pesos from the EU to support the banana sector

The Dominican Government received from the European Union the transfer of funds from the credit facility established in the “Banana Support Measures for the Dominican Republic” (BAM) program, for an amount of RD$322,261,284.02 million, to be executed by the Agricultural Bank, in coordination with the Ministries of Economy, Planning and Development, and Agriculture. This transfer will be complemented by another RD$34,389,937.06 to complete the total amount of the contribution of RD$356,651,221.08.

Some 200 producers will be beneficiaries of the fund aimed at contributing to the competitiveness of the banana value chain sustainably and inclusively, which allows access to individual and associative credits to micro, small, and medium banana producers in the Dominican Republic, located in the provinces of Azua, Montecristi and Valverde.

In this sense, 90% of the portfolio will be allocated to a credit facility. The remaining 10% will be used to cover technical assistance to train producers and technicians from the ministry and the bank and the project’s operating expenses.

The act was headed by Pável Isa Contreras, Minister of Economy, Planning, and Development; Fernando Durán, general manager of Banco Agrícola; and Katja Afheldt, ambassador of the European Union in the Dominican Republic.

The operational management of this credit facility, which was in charge of Banco Ademi and will now pass to the Agricultural Bank of the Dominican Republic, will have an initial period of five years to capture, analyze, and grant financing facilities oriented exclusively to the banana sector for the execution of activities to promote production (inputs, technologies, reconversion, or working capital), marketing, export (including access to certifications), and environmental sustainability of the production of said item, which stimulate its competitiveness and increase your productivity.

This credit facility will allow access to individual and associative credits to micro, small, and medium banana producers in the Dominican Republic of up to 31.44 hectares and 500 farms in the established provinces, with individual loans from RD$150,000.00 to RD$2,000,000 and associative loans and large producers from RD$300,00.00 to RD$3,000,000.00.