Spain First Loans Tender

After months of work for the implementation of the Financial Instrument for Centralized Management IFGC designed by the Ministry of Agriculture Fisheries and Food with SAECA as a collaborating entity to support management last three loans were formalized last week Guaranteed by the IFGC within the framework of the Rural Development Program of Castilla y Len co-financed by the EAFRD 2014-2020.The IFGC is a financial support mechanism that aims to promote easier access to credit for young people farmers livestock farmers foresters and agri-food industries and allows to support viable investments linked to the agricultural and agri-food sector in better financing conditions.This facilitates the access to credit to those interested who have been finding difficulties when applying for loans since a large part of the risk is assumed by the IFGC and not by the banking entities a situation that sometimes limited the granting of loans.Castilla y Len which was the first autonomous community to adhere to the Financial Instrument approved through the Financing Agreement signed on October 31 2017 its participation in the IFGC for the financing of grants within the framework of its Rural Development Program with an initial contribution to the instrument already made of 22 million euros for the measures mentioned. It is expected to expand the financial contributions until reaching the total commitment of 90 million euros included in the Financing Agreement.This contribution for the granting of guaranteed loans with its Rural Development Program are destined to investments in agricultural holdings to transformation marketing and or development of agricultural products to new forestry technologies and transformation and commercialization of forest products. At present he has already received more than 85 loan applications worth 39 million euros.The Junta de Extremadura also signed on February 6 its IFGC Financing Agreement to finance investments in the same investment support measures as Castilla y Len together with grants aimed at creating companies for young farmers.With the formalization of these first loans a period begins in which a new model of support for investments in rural areas is promoted allowing the traditional subsidy lines to be combined with financial instruments thus multiplying the economic growth options of the territories.