13,561 Dominican agricultural producers to benefit from CABEI-approved financing
60 million USD project has a strong focus on green initiatives.
Santo Domingo, November 23, 2021.- The Central American Bank for Economic Integration (CABEI) approved US$60 million for the development of the "Project to Strengthen Financing for the Agricultural Sector with a Technological and Sustainable Approach in the Dominican Republic" to promote agricultural financing among micro, small and medium-sized farmers and implement sustainable initiatives.
"This new approval for our Dominican Republic partner is innovative in that it will allow more than 80% of the financing to be allocated to green initiatives, such as organic agriculture, precision irrigation systems and improved pastures for livestock, among other items, thus strengthening productive linkages," explained CABEI Executive President, Dr. Dante Mossi.
This project is also expected to improve the level of population consumption, productivity and marketing of agri-food products under competitive conditions by directing resources to approximately 13,561 producers in the agricultural sector.
This operation is part of CABEI's Sustainable Competitiveness and Human Development and Social Inclusion strategic axis, as well as the "Dominican Republic Country Strategy" in the Rural Development and Environment focus area since the agricultural sector is a major determinant of the country's economic performance and the main support for the rural environment through the generation of income and employment.
The financing to be executed by Banco Agrícola de la República Dominicana (BAGRICOLA) is for a 20-year term, with a five-year grace period and an indicative interest rate of 6-month LIBOR plus 240 basis points.