AGRIC CREDIT

closed

The Second Agricultural Credit Project, when successfully completed, will achieve (a) expanded production, especially of exportable products, increased farmers' profitability through on-farm investments; (b) improved operating efficiency of public and private banks in agricultural lending and enhanced domestic resource mobilization capacity; and (c) greater stimulation of the participation of private banks in agricultural lending. The project, to be carried out over seven years, will: (a) establish a program for medium- and long-term loans through the Banco Nacional de Fomento (BNF) and private banks to finance on-farm investments for crop and livestock production, and marketing infrastructure at the farm level; and (b) provide institutional strengthening to BNF. This latter component is aimed at strengthening the capability of the Departments of Credit and Finance. It will also train BNF staff, both locally and abroad, in the areas of: savings mobilization, credit promotion, programming and planning, accounting, auditing, reporting, project formulation and subloan appraisal, approval and supervision.