The Secretary General of the Ministry of Rural Development and Food, Dimitris Papagiannidis, signed an invitation to the Hellenic Development Bank as the managing body for the activation of the new Micro-Credit Fund for the Agri-Food Sector, following a relevant order from Minister S.
After almost a year of operation of the Rural Development Guarantee Fund through which loans with particularly reduced collateral are provided, the General Secretariat of Union Resources and Infrastructure expands the financial instruments of the RDP to provide additional lending opportunities to farmers and agribusiness companies. through the granting of microcredit, notes in a relevant announcement of the Ministry of Rural Development and adds:
In this way, it seeks to meet the increased demand that has been recorded for very small loans, taking advantage of the recent legal framework, which established the possibility of establishing microcredit providers. Thus, through the RDP 2014-2020 and with the resources of the Union Recovery Instrument (EURI), a new Fund for the provision of shared risk loans is established, in which both Banks and microcredit providers will be able to participate, as Financial Intermediaries. The Fund’s investment strategy envisages a combination of loans with interest rate subsidies and technical support of final recipients, in order for the tool to be attractive to both beneficiaries and financial institutions.
In particular, the ambition of the Ministry of Rural Development and Food is to contribute to the development of loan products amounting to 25,000 euros, which will be provided with little or no collateral, interest rate subsidy for the first years of repayment and the possibility to provide support to beneficiaries. who are unfamiliar with this type of financing in order to develop and execute their business plan properly.
At the same time, this strategy significantly reduces the risk undertaken by financial institutions, aiming to attract as many actors as possible in order to develop an ecosystem of microcredit providers in the agri-food sector.
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Source From: Capital
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