CABEI approves US$50 million program for Argentina to benefit MIPYMEs in rural agri-food sector affected by crisis

Tegucigalpa, April 27 2021 - As a result of the economic crisis caused by the pandemic, hundreds of micro, small and medium-sized agricultural and agribusiness enterprises (MIPYMEs) in rural Argentina have been affected economically and financially during the last year.

Aware of this reality and in support of its extra-regional member country, the Central American Bank for Economic Integration (CABEI) approved a US$50 million "Post-Emergency Rural Recovery and Development Program" to support and, in some cases, consolidate agro-productive, agro-industrial and service activities that generate income and employment for the rural and semi-rural population, with special emphasis on young people and a gender perspective.

CABEI's Executive President, Dr. Dante Mossi, stated, "With this financing, CABEI contributes to the Republic of Argentina's efforts to achieve a more inclusive economy, particularly in rural areas, by consolidating agro-productive, agro-industrial and service activities that generate greater income and employment for the rural population, thus supporting the introduction of new technology and economic reactivation in rural and productive areas in light of the impact generated by COVID-19.”

With the Program's conclusion, it is expected to have a positive impact on 458 MIPYMEs and 123 productive organizations in rural areas, as well as the granting of 2,235 loans, which translates into almost 7,000 beneficiaries. There will also be a positive impact on 4,700 families through the generation of direct employment, 157 new enterprises, and advice and training for 700 young people.

The director for Argentina and Colombia, Maximiliano Alonso, said: "We are committed to the development of the country's regional economies, taking the environment, ecology and a new productivity model with social inclusion into account. Our objective is to cooperate with and strengthen the agricultural production of rural entrepreneurs, especially young people and women who work the land throughout Argentina.”

The specific objectives of the Program include support for rebuilding agri-food sector initiatives' sustainability, promoting the comprehensive and accelerated incorporation of appropriate technology, as well as fostering new initiatives and youth entrepreneurship.

This loan is aimed at financing working capital, logistics, infrastructure, youth and women's enterprises and the incorporation of technology. It will also provide technical assistance for the formulation of sustainable agriculture projects.

The terms of the loan are for a 20-year term with a five-year grace period and a LIBOR rate plus 240 points.