ANNOUNCEMENT 09 Jul 2020

In July 2020, the Peruvian government announced the creation of a new loan guarantee program for small agricultural producers, as a further sectoral stimulus given the economic crisis created by the COVID-19 pandemic.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

El Peruano. Official Gazette. DECRETO DE URGENCIA Nº 082-2020. DECRETO DE URGENCIA QUE DICTA MEDIDAS COMPLEMENTARIAS DESTINADAS AL FINANCIAMIENTO DE LOS PEQUEÑOS PRODUCTORES AGRARIOS DEL SECTOR AGRARIO PARA LA REDUCCIÓN DEL IMPACTO DEL COVID-19 Y OTRAS MEDIDAS. 09/07/2020. Available at: https://busquedas.elperuano.pe/normaslegales/decreto-de-urgencia-que-dicta-medidas-complementarias-destin-decreto-de-urgencia-no-082-2020-1870378-1/

Ministerio de Agricultura y Riego. Ministry of Agriculture and Irrigation. Press release. 09/07/2020. Available at: https://www.gob.pe/institucion/minagri/noticias/201514-gobierno-crea-el-fae-agro-para-inyectar-s-2-000-millones-en-creditos-a-pequenos-productores

Update June 2021
Ministerio de Economía y Finanzas. Ministry of Economy and Finance. Press release. “Empresas tendrán hasta el 30 de setiembre para acogerse a Reactiva Perú, FAE-Mype y otros programas de financiamiento”. 28/06/2021. Available at: https://www.gob.pe/institucion/mef/noticias/503004-empresas-tendran-hasta-el-30-de-setiembre-para-acogerse-a-reactiva-peru-fae-mype-y-otros-programas-de-financiamiento

Update September 2021

El Peruano. Official Gazette. "DECRETO DE URGENCIA QUE ESTABLECE MEDIDAS PARA PROMOVER EL FINANCIAMIENTO DE LA MYPE Y DE LOS PEQUEÑOS PRODUCTORES AGRARIOS Y OTRAS MEDIDAS EXTRAORDINARIAS EN MATERIA ECONÓMICA". 30/09/2021. Available at: https://busquedas.elperuano.pe/normaslegales/decreto-de-urgencia-que-establece-medidas-para-promover-el-f-decreto-de-urgencia-n-091-2021-1996964-1/

Inception date: 09 Jul 2020 | Removal date: 31 Mar 2022

Loan guarantee

On 9 July 2020, the Peruvian government approved Urgency Decree Nº 082-2020 which creates a new loan guarantee program for small agricultural producers, called "FAE-Agro", for the amount of PEN 2 billion (approx. USD 571 million). According to the Ministry of Agriculture and Irrigation, "this is the largest capital injection allocated to the agricultural sector since 2013" (own translation).

FAE-AGRO stands for National Government Guarantee Program for Business Agrarian Financing and aims to promote financing lines that guarantee the 2020-2021 agricultural campaign. Associated with the type of crops and vegetative cycle, the limits to the loan guarantees are as follows: (i) for credits up to PEN 15 000, the provided guarantee is of 98%; and (ii) for credits up to PEN 30 000, the guarantee is of 95%.

In order to ensure small agricultural producers have access to the program, the loans will be channeled through banks as well as savings and credit cooperatives. The Peruvian Development Finance Corporation (COFIDE in Spanish) is the agency in charge of managing and administrating the program.

The measure constitutes new economic support for family and small farmers. This support adds to the previous financing through the AgroPerú fund in April 2020 (see related state act).

Update

On 28 June 2021, the Ministry of Economy and Finance of Peru extended the deadline to apply for support under the present programme until 30 September 2021.

On 30 September 2021, the Peruvian government published Urgency Decree N° 091-2021 extending, among others, the present programme until 31 March 2022.

AFFECTED PRODUCTS

 
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