USAID Encourages Competitiveness of Agricultural Pymes with Small Loans

USAID Encourages Competitiveness of Agricultural Pymes with Small Loans
Santo Domingo, 8/28/2010

La Agencia de los Estados Unidos para el Desarrollo Internacional firmó un Acuerdo de Garantía parcial de Cartera de Préstamos de 3.4 millones de dólares con el que se financiará préstamos a las micro, pequeñas y medianas empresas en la cadena de valor de la agricultura no tradicional.

The purpose of the agreement is to strengthen the capacity of cooperatives to finance loans to micro, small and medium-sized businesses in the value chain of non-traditional agriculture in the Dominican Republic with the goal of stimulating competitiveness…

The US Agency for International Development (USAID) signed a partially guaranteed loan portfolio agreement for $3.4 million dollars that will finance small loans to micro, small and medium size companies within the value chain of non-traditional agriculture.

The agreement was signed by Jason Fraser, interim director of USAID: managing director of the Mamoncito de Moncion Cooperative, Alfredo Dorrejo Peralta, and Chairman of the Board of Directors of the Cooperative of the Association  for the Development of the Province of Espaillat (ADEPE), Miguel Olivo.

The purpose of the agreement is to strengthen the capacity of cooperatives to finance loans to micro, small and medium-sized businesses in the value chain of non-traditional agriculture in the Dominican Republic with the goal of stimulating competitiveness, diversification of production and economic and earnings growth in the sector.

Those who qualify for these loans are micro, small and medium-size, non-sovereign businesses, associations and cooperatives established under the country’s laws associated with the value chain clusters of identifiable value in the USAID project for Rural Economic Diversification.  They can also belong to the non-traditional or non-sensitive agricultural value chain areas that would exclude the value chains of garlic, rice, onions, beans, corn, sugar cane, chicken meat, milk production, tobacco and citrus fruits such as oranges.

This is the second such agreement signed between the USAID and the Dominican Republic. The first was with the ADEMI Bank in 2008. The deadline for disbursing the loans is three years while the loan coverage expiration date is seven years, both starting from the date of the signing of the agreement.

In the center, interim USAID director, Jason Fraser; to the left Miguel Olivo, Chairman of the Board of Directors of the Cooperative of the Association for the Development of the Province of Espaillat (COOPADEPE) and on the right, Alfredo Dorrejo –General Manager of the MAMONCITO Cooperative.