Efficient financing for farmers
MCA-Honduras Requests Proposals to Manage a Trust Fund to Facilitate Access to Agricultural Credit
About 114 million lempiras will be administered by the Honduras private banking system to promote access to credit to client-farmers from MCA-Honduras Farmers Training and Development Activity (FTDA)
Tegucigalpa.- On August 27, MCA-Honduras held a pre-conference with 16 representatives of eight national banks, to provide information about requirements and the invitation to present proposals for the process: “Farmers Access to Credit Activity Trust Fund Administration Services”.
The selected trustee will choose eligible financial entities, including second-floor institutions, which at the same time will provide credit to regulate and non regulated financial intermediaries in charge of canalizing the loans to farmers currently being assisted by MCA-Honduras programs.
Part of the people attending the informative event.
Among other activities, the chosen trustee will be responsible of identifying and evaluating financial intermediaries, defining the amount of each credit line, and will sign the respective contracts.
The trustee shall cautiously and diligently manage, invest and recover the resources of the trust fund, ensuring an appropriate performance level and the integrity of the resources making part of the assets in trust.
MCA-Honduras will invest 114 million lempiras at an interest rate of 6% and, as the financial intermediaries support the trust fund with their own resources, the interest rate will be reduced. With this initiative, MCA Honduras pretends to move more than 700 million lempiras in three years, in an effort that will benefit both the rural zones and the national economy.
The trust fund is part of the Farmers Access to Credit Activity (FACA), currently being implemented by MCA-Honduras and which includes technical assistance for the banking system and support for the approval of the Secured Transactions Law and Registry.