Agricultural Credit

The National Agricultural Development Bank's board has ordered an investigation into credit approvals to determine whether irregularities occurred in the approval process and to establish responsibility.

Agricultural sector representatives will meet with BANADESA to discuss credit restructuring under a new congressional decree, though farmers say the bank's L1.2 billion fund (about $48 million) is insufficient—they estimate over L2 billion needed to stabilize the sector.

Congress unanimously passed the Financial Relief Law for Agricultural Producers, which allows Banadesa and Senprende to restructure and refinance overdue farm loans at a maximum 2% interest rate over 10 years, with the government subsidizing 80% of crop-insurance premiums using 100 million lempiras.