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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.

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.