A recent report by Agrocapital highlights the difficult situation the agricultural sector is facing in its relationship with banks. Despite being a crucial sector that maintained food supply during the pandemic, agriculture has not benefited from special financing programs or government rescue plans. Credit restrictions from private banks are significant, leaving BancoEstado as the only entity that has increased its loans to the sector, although its impact is limited due to its marginal market share.
At Agrocapital, we criticize the banking sector’s low willingness to support agriculture since June 2020, despite the global increase in food demand. Companies in the sector face significant challenges in maintaining liquidity and strategically planning their capital needs. Given this situation, we suggest that BancoEstado should review its credit and risk policies to become a more relevant player. Additionally, we propose encouraging competition and financial innovation to improve credit conditions for the sector.
Finally, Agrocapital expresses a positive outlook for the future, highlighting that the national fruit industry has great potential.
