The National Farm Producers Confederation (Confenagro) has expressed its appreciation for the recent modification of the Regulation for the Evaluation of Assets (REA) approved during the last session of the Monetary Board, as reported in Diario Libre. This modification means that cattle and other livestock farms as well as agricultural properties may now be considered as multipurpose guarantees by the commercial banks and will allow loans for as much as 80% of the value of the properties.
Confenagro president Eric Rivero said that in the past, the banks could only lend up to 50% of the value of agricultural properties. This restricted access to credit and reduced their value.
Confenagro, whose members represent nearly all sectors of national farming production including rice, eggs, poultry, milk, meat, bananas, oriental vegetables, the Constanza vegetable producers, pork, beans, and most fruit producers is confident that this new modification will enable the farming sector to attract greater investments and guarantee the value of rural properties.