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Friday, September 29, 2023
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BBVA launches a six-year loan for farmers affected by the lack of rain

Date: September 29, 2023 Time: 12:10:10

BBVA will give the possibility of worsening a loan to farmers and ranchers who have been affected by the drought in their work activity. The loan has been announced this Monday by the entity and will have a repayment term of a maximum of six years and the possibility of grace in the first.

The bank has also explained that both the amount and the conditions of the operation will be specified individually, taking into account the client to whom it will be directed. Interest will be settled on a quarterly basis, although quarterly, semi-annual and annual amortizations will be allowed.

This financing resource will not deprive the client of the right to collect other government aid at the state or regional level that is being implemented to alleviate the effects of this drought on the first sector in Spain. It will also complement the agricultural insurance against drought offered by BBVA itself.

Drought affects the entire production chain

“These operations are likely to be guaranteed by SAECA (Sociedad Anónima Estatal de Caución Agraria), in its work of providing guarantees and sureties to facilitate access to financing for the primary sector as a whole,” the statement added.

The entity has pointed out that water stress affects the entire production chain, especially the primary sector, and that, according to BBVA Research, the abnormal lack of rain and the deterioration of soil moisture in the first half of 2023 would have reduced the annual growth of the sector’s gross value added by between 3% and 4% compared to an average climatic situation.

Likewise, it has predicted that if these conditions stabilize in the coming months, the effects could be significantly greater.

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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