Agricultural Credit

Rice producers in Comayagua and Jesús de Otoro lost roughly 3,500 manzanas (about 6,100 acres) of crops after BANADESA failed to release promised financing, while farmers in Atlántida and Colón also face uncertainty having begun work in September without receiving the expected credit support.

Congressman Mario Pérez introduced a proposal to expand an existing agricultural-bank amnesty decree to include coffee producers and people who financed market construction, allowing them to access debt-relief benefits.

Honduras's national microenterprise agency is making 86 million lempiras (about $3.4 million) available to agricultural producers through four partner institutions at interest rates of 10–12% annually, with financial training and technical assistance included.

Honduras's banking regulator approved temporary relief measures for over 40,000 agricultural debtors affected by El Niño drought, including loan restructuring, grace periods, reduced interest rates, and waived penalties, with applications due by February 28, 2027.

The National Agricultural Development Bank (Banadesa) faces overdue loans totaling nearly L3.8 billion—about 50% of its portfolio—including decades-old credits, limiting its financial sustainability and requiring a debt-recovery strategy.

Lawmakers introduced a bill to create Procafín, a nonprofit financing mechanism that would negotiate lower-interest loans for coffee farmers and reduce reliance on informal lending, funded by a per-sack export contribution.

Internal documents from the agricultural development bank Banadesa reveal a July 2026 credit committee meeting convened for only three loan applications totaling L31.7 million (about $1.27 million), including L7.8 million (about $312,000) to a man with political and family ties to the bank's president.

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.