Tuesday, March 28

BNP and Mida launch $50 million financial program for the Panamanian rice sector

With the objective of support the country’s rice sector and guarantee the next harvest, the Minister of Agricultural Development, Augusto Valderrama and the general manager of Panama national bank (BNP), Javier Carrizo, announced a financial program in the order of $50 million, available as of the date.

the details of this transaction, called factoring, and which was worked on jointly between both institutions, They were announced at a conference.

We are very grateful for all the support that the BNP and your entire team gave us, to approve the factoring of $50 million for the national rice sector. This is an extremely important action for an agricultural sector, which has been affected by the pandemic and now with the high costs of raw materials and agricultural inputs“, highlighted Minister Valderrama.

Factoring is a procedure by which a bank or a specialized financial entity buys the accounts receivable of a company, assuming the purchasing entity the risk of collection.

The manager of the BNP said that they are facing a program that should end in December, but that they are sure that it will be extended further, in amount and time. He added that andThis program will help alleviate the high cost of supplies and supplies that producers are having to face the next planting.

He added that The procedures must be submitted before June 30 of this year and that the discount will be 48 cents per each charge of $9.50 per quintal of wet and dirty rice delivered to the mills, this represents a discount rate of 5% that the BNP would collect, which includes 1% of the FECI, required by law.

World rice production has been threatened by the increase in the prices of inputs, agrochemical products, energy and freight; however, the Government has guaranteed that it will continue to support the agricultural sector, so that Panamanian producers continue to produce food and do not abandon the countryside.