Paulo Proaño Andrade: “BanEcuador delivers up to 70% of what the farmer needs”

Ecuadornews:

The head of the entity explained that the commercial invoice is a tool that allows producers to access timely financing so as not to affect sowing and subsequent harvesting. The UNA EP has liquidity.

The public company Storage Unit (UNA EP) has become an essential part for farmers, especially grains such as corn or rice.

How does the current purchase of grain crops (rice and corn) progress?

The purchase is normal. We receive the product (in silos) from small farmers and make payments on time.

Now we have liquidity, that’s why we cancel the salaries we have with the farmers on time. There is no problem of payments.

Is payment made in 15 days or less?

Maximum in 15 days, but also depends on the requirements that the farmer provides me; if he delivers the documents soon – identity card, RUC (Single Taxpayers Registry), RISE (Simplified Ecuadorian Tax Regime) and others – (the payment) is before, but if he delays it is maximum 15 days.

Has the intervention of the UNA EP been key for the price of rice to be regulated?

What I can tell you is that we are buying at the value that the Ministry of Agriculture has given us. There is a price floor and a roof, but we are with the ceiling price, which is $ 35.50, and it depends clearly on the quality, that is, how the product comes.

There is an agreement with BanEcuador. What does it consist of?

The agreement provides a bit of oxygenation to the UNA because it allows a prudent time to pay what we owe to the farmers. For example, the producer arrives at the silos, presents the BanEcuador official with his ID, then the bank official sees if he is eligible or not to receive the credit that, it seems to me, is 5% per year.

In addition, there are certain requirements, including a negotiable commercial invoice, which is not the same checkbook as other invoices, and with this BanEcuador immediately gives you 70% of the credit, and we have a prudent time to cancel everything.

Is it to say that the remaining 30% is covered by you?

The bank gives 70%, but I 100% deposit it in a special account that BanEcuador has, there the entity makes the crossing, depending on how much it is, and gives it the credit.

What else must the farmer present to access this credit?

The RUC, the identity card, voting certificate and a copy of the basic services that is within a maximum of three months. On the amount, the farmer can receive (an equivalent value) 450 sacks (of rice in shell), that is, to plant up to 10 hectares.

How does the farmer help the agreement signed with BanEcuador?

The agreement has been made so that the farmer has the fastest money, and so, after his harvest, he begins his sowing and so that the debts do not harm him. Before, the UNA EP did not pay them, it got complicated, now we do not want this to happen.

Is this benefit for rice farmers, corn farmers and other farmers?

For now we have it as a pilot in rice, but it will also include maize. We are currently in training, so we hope to benefit as many farmers as possible. To cover the loans UNA needs financing.

How does the issue of debt advance with the Ministry of Agriculture?

There were conversations with the Ministry of Agriculture, we made work tables and if it has been canceled, some transfers have been made due to the issue of winter and summer fertilizers, but one item is still missing, I am not sure how much it is.

The minister Rubén Flores affirmed that they are around $ 8 million … More or less that, but I have a silver that is in (the Ministry of) Finance that still does not arrive to me. Of the fertilizers more or less than $ 14 million. Some transfers are not effective. We are in talks. (I)

Source: https://www.eltelegrafo.com.ec/noticias/economia/4/banecuador-creditos-agricultor