Representatives of the public and private agricultural sector in Córdoba requested the Central Bank of the Argentine Republic (BCRA) not to annul a measure that impacts obtaining financing for the sector.
The Minister of Bioagroindustry, Sergio Busso, asked the BCRA authorities not to extend Communication “A” 7931 regarding the regulations on “Interest rates in credit operations”, which expires on the 30th of this month.
These regulations require producers who have more than 5% of the stock from the last soybean harvest to pay a higher interest rate. Specifically, those who are in this situation must pay an interest higher than the established rate; which is another punishment to production.
“This measure means a higher financial cost and threatens the growth of the sector. The Government has the possibility of relieving producers, of removing part of the pressure that the countryside has been under for years,” said the Minister of Bioagroindustry of Córdoba, Sergio Busso. And he added: “It would be a clear signal for the countryside and would offer relief to producers.”
The authorities of the Córdoba Liaison Commission, made up of the Argentine Rural Society (SRA, Argentine Agrarian Federation (FAA), Coninagro and Cartez), endorsed the portfolio’s request. “We need competitive rates to increase production. It is a financial trap. “which punishes production and the decision not to extend it would be positive,” agreed José Luis Careggio (FAA), Vanesa Padulles (Coninagro), Patricio Kilmurray (Cartez) and Albina Capellán (SRA), from the provincial Liaison Commission.
Busso insisted on the need for producers to freely access available credit, under the same conditions as other economic activities. “The countryside needs a gesture. If progress is made with this measure, producers will be incentivized. The next step has to be the removal of all withholdings,” he said.
This request is added to that made by the province of Santa Fe, in the same sense.
