AGR CR/FIRA IX

closed

The Ninth Agricultural Credit Project supports the Government's medium-term structural policy reform program and is linked to the 1986-87 external financing plan supported by the Bank and other agencies. It consists of a credit program designed to increase agricultural productivity, exports and real farm income. The project will directly benefit about 100,000 families (550,000 beneficiaries) and will generate an additional 240,000 jobs. It will assist the Government to improve agricultural policies through the reduction of interest rate subsidies. Agricultural Trust Funds in the Bank of Mexico (FIRA's) and the Trust Fund for Credit in Irrigated and Rainfed Areas (FICART's) productive support programs to farmers will be strengthened. Finally, a rural financial subsector review will identify problem areas and improve the agricultural credit system, including further reductions in subsidies in credit and crop insurance, improved efficiencies in the rural financial system, and increased domestic resource mobilization.