On Tuesday the Administrator of the state-owned Agriculture Bank (Banco Agrícola "Bagrícola") announced that starting May 1st the costs of its loans will rise sharply. Presently bearing a favorable 12% interest rate, Bagrícola loans also will start carrying a 6% charge for "closing costs." Many agricultural producers have protested not only the rise in loan costs, but its magnitude. Some have called on President Fernández to overrule Bagrícola and annul the decision. Bagrícola Administrator Carlos Segura Foster maintains that the rise is necessary, since at current "subsidized" levels the Bank is losing RD$7.2 million every month, or RD$84 million a year.
