MCA-Honduras and the Local Financial System in a Combined Effort to Strengthen Development of the Honduran Agricultural Sector

 
 

 

Tegucigalpa, January 30, 2008.- In an event called “Financing the Agricultural Value Chain”,  MCA – Honduras and representatives of the national financial sector demonstrated that there is accessible credit for the agricultural sector.

Through the Farmers Access to Credit Activity (FACA) and in a joint effort with financial intermediaries of first and second-floor level, MCA-Honduras is opening possibilities for beneficiaries of the Farmers Training and Development Activity (FTDA), and actually more than 1,200 farmers might have available resources to reinvest in their land, and to promote a greater economical growth in the agricultural sector.

 

The Ministry of Agriculture, Hector Hernandez, during the inauguration of the event.

 
  
 

By encouraging transformation of their farms into productive and sustainable businesses, FTDA is transforming farmers into agricultural businessmen.  This transformation is based on the adoption of a modern system of production that will allow them to compete, comply, reduce risks, and adapt themselves to the market trends and opportunities.

The event also gave the opportunity to project the financial prospects for small and medium farmers, as well for the financial intermediaries along the production network.

The Millennium Challenge Account, through

  
 

Partial view of financial intermediaries and services providers representatives that attended  the event.

 

Banco Mercantil (BAMER), will canalize 114 millions lempiras through a trust fund that, at the same time, will finance the credit lines requested by the intermediaries interested in the agricultural sector.  These resources, and the technical assistance offered by the Millennium Challenge Account, are expected to serve as leverage to obtain over 650 millions lempiras, while the financial products developed by the intermediaries are being disseminated nationwide. During the last three months, MCA-Honduras has signed, through the Farmers Access to Credit Activity (FACA), assistance agreements with ten financial institutions which are actually working to adapt its products to meet the agricultural sector requirements.

 
    
 
 

Attendees learned about experiences obtained in the financing of small agricultural producers by Bancovelo in Honduras, and about  Banco LAFISE development in Nicaragua, where they are financing agricultural producers according to a value chain  approach; the conclusions at the end of the meeting included  the challenges and opportunities currently offered by  the Honduran agricultural sector.

The event was presided by the Ministry of Agriculture and Livestock, Hector Hernandez; the Ministry of Industry and Commerce, Fredis Cerrato, the Vice Ministry of the presidency,

 

El director del Proyecto de Desarrollo Rural de la Cuenta del Milenio, durante el cierre de la conferencia.

 

Ricardo Arias; the Millennium Challenge Corporation Director for Honduras, John Wingle; and,MCA-Honduras General Director, Martin Ochoa; Banco LAFISE representative, Enrique Zamora; and Bancovelo General Manager, Juan José Lagos.

 

 


2009. Millenium Challenge Account. Tegucigalpa, Honduras.

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