AGRICULTURAL CREDIT

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The Second Agriculture Credit Project will provide a loan of US$5 million to the Banco de Fomento Agropecuario to cover the foreign exchange costs of a continuation of the Agricultural Credit Loan of 1954 (Loan 105). In general it can be said that Peruvian agriculture is now in a period of expansion and modernization, which will result in a larger and better production at reduced costs. The operation of the first loan has been generally successful. Demand by farmers for long-term credits has been met during the past two years. This demand continues at a high level and the Banco is unable to meet it from its own resources without a further loan. The Banco is the only institution in Peru making agricultural credits on reasonable terms. It operates efficiently and reaches all the sectors in end of its services. On September 30, 1956 all the funds from Loan 105 had been committed. The Banco, therefore, in order to be able to continue to meet the demand for long-term credits has requested the above-mentioned to carry out its program for the years 1956-1958.