The Ecuadorian Ministry of Agriculture and Livestock and BanEcuador presented a proposal this Sunday “to relieve financial pressure” faced by banana producers due to the war in Ukraine which has affected the trade of this fruit, of which Ecuador is the world’s leading exporter.
It is a plan for refinancing and restructuring the debts of small banana producers, the Ministry summarized in a statement.
He explained that through refinancing, the producer will be able to review the conditions of his credit and seek a new agreement, while with the restructuring he will be able to modify the current structure of his loan.
From last January to May 14, BanEcuador has refinanced and restructured debt obligations for US$4,050,135, of which 63% (US$2,551,585) corresponds to the agricultural sector.
The Ministry of Agriculture and BanEcuador are working so that the country’s small agricultural and livestock producers can also benefit from new credits and longer payment terms, the letter states.
The Minister of Agriculture, Bernardo Manzano, recalled that US$6.25 must be paid for the contracted box of bananas, which is the minimum support price established in October 2021, through a Ministerial Agreement.
He warned that, if this provision is not complied with, the Ministry as a regulatory entity will impose the corresponding sanctions.
On the other hand, the minister pointed out that the MAG continues to work on aid initiatives in tax and social security matters in favor of banana producers.
A ban on the registration of new plantation areas has been established. That is, prohibit new plantations and thus guarantee a fair price to current producers, says the letter.
According to the Banana Control System, more than 9,000 producers grow bananas on 194,530 hectares.
Ecuador is the world’s leading exporter of bananas, whose sales generate around US$3.5 billion each year and directly employ 250,000 Ecuadorians.