News and Events
Loans of up to One million dollars for Commercial Reforestation
11/19/2010
The Forest Products Sector Board, the Bureau of Incentives for Investment and Export from REDIEX of the Ministry of Industry and Commerce and the National Forest Institute (INFONA) launched a new system of financing reforestation projects with commercial purposes called "Pilot Product of Financing Reforestation Projects for Commercial purposes: PROFORESTAL" of the Financial Development Agency (AFD).
The credit is for individuals or legal entities, owners of land, living in the country, that present sustainable forestall projects and demonstrate capacity to pay for the return of credit, whether with cash flows from the investment project itself and/or with the flow of their additional activity in the country, said Edgar Alarcon of the AFD.
It may be financed up to 100% of the project value, or up to 80% of the appraised value of the property on which the project will be developed; whichever is lower. For projects underway it will be granted up to U$ 1 million dollars and new implementation projects up to U$ 500,000. May be subject to maximum terms of 12 years, including a grace period for both, the payment of the capital and interests and as guarantees required to the project it must include in all cases the land where the project will be developed.
The annual value in local currency (Guaranies) is a 10.5%, according to the methodology for setting interest rates, says the presentation of the representative of the AFD.
Francisco Rivas, Minister of Industry and Commerce, said that the forestry sector in our country has an extraordinary potential to provide jobs and be a dynamic sector in all respects. "It is an investment for the future taking into account our climate that supports us and helps us in every way, now we will put our hands we help them, and with this start I think we will come to a happy ending, this is a pilot plan we will say, because it offers the forestall sector a line of credit as of the existent need, and wants to become a major impulse for the development of raw material for this sector".
Ricardo Kiriluk, business man and president of the Forestall Products Sector Roundtable of REDIEX emphasized that private banks always gave barriers to credits for the forestall sector due to the long duration of the project, so they take with high expectations how will develop the pilot plan for financing.
Ignacio Serratti
Fuente: REDIEX
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