ANNOUNCEMENT 18 Feb 2019

The Government of Ecuador has announced the launch of a new credit line to support the diversification of agricultural exports.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Ministry of Agriculture and Livestock. Ministerio de Agricultura y Ganadería. Noticias. "Gobierno ofrece línea de crédito para impulsar la exportación agrícola" de 18 de febrero de 2019. Available at: https://www.agricultura.gob.ec/gobierno-ofrece-linea-de-credito-para-impulsar-la-exportacion-agricola/

National Financial Corporation. Corporación Financiera Nacional. Productos y servicios. Fomento a la Diversificación de Exportaciones. Retrieved on 19/03/2019. Available at: https://www.cfn.fin.ec/fomento-a-la-diversificacion-de-exportaciones/

Inception date: 18 Feb 2019 | Removal date: open ended

Trade finance

On 18 February 2019, the Ministry of Agriculture and Livestock of Ecuador together with the Ecuadorian EXIM bank National Financial Corporation (i.e Corporacion Financiera Nacional or CFN) have announced the launch new credit line to support exports. Concretely, the new line seeks to finance the production of agricultural goods and/or the exportation of these goods both in its primary form or manufactured.

The new financial instrument applies to pineapples, mangoes, pitahayas, pepper, passion fruit, yucca, golden berry, soursop, cucumber, certain tomatoes, asparagus, granadilla, mandarines, grapes, limes, papaya and lemons.

The export credits are limited to exporters with annual sales greater than USD 100,000 and that want to apply for a credit line of minimum USD 50,000. The resources will cover between 70% to 80% of the total costs in the case of new projects, and between 80% and 100% of the costs for ongoing projects. 

The term of the loans has been set at 15 years in the cases of fixed asset investments, and up to 5 years for projects related to working capital.

AFFECTED SECTORS