Argentina's Ministry of Agro- Industry announced it would be implementing a series of measures with the governments of Rio Negro and Neuquen in response to the complex situation that the producers of pears and apples of these provinces were facing.
The portfolio led by Ricardo Buryaile allocated 150 million pesos to create two revolving funds aimed at providing flexible loans to finance the harvest in the provinces of Neuquen and Rio Negro. The funds will be distributed based on the production area in each province.
128.9 million are allocated for the producers from Rio Negro. 80% of the funds will be allocated to small producers (those that have less than 50 hectares), while the remaining 20% will be destined to medium producers (the ones that have between 50 and 250 hectares).
Estimates are this measure will help 2,000 small and medium producers. Authorities established the loans would have a ceiling of 350,000 pesos per producer and a 2% rate for small producers and 5% for medium and large ones.
Additionally, the Government of Rio Negro pledged another 50 million pesos for the producers in the province.
Meanwhile, the province of Neuquen is entitled to 21.1 million pesos. The funds will be allocated for producers with up to 100 hectares; with a ceiling of 300 thousand pesos per producer at a 6% rate.
In addition, Argentina's National Bank has 600 million pesos available for loans, subsidized by the Ministry of Agro Industry, to finance the harvest, transport, working capital and pre-finance exports. Thus, there are a total 800 million pesos to finance the sector.
Regarding tax debts, the Federal Administration of Public Revenue (AFIP) recently established a Permanent Financing Plan of 6 instalments for unpaid obligations and 3 instalments for contributions.
Additionally, the reimbursements for the Patagonian ports located south of the Colorado River (which had been lost since 1 January 2006) are in full force .
