Argentina's Banco Nacion opens credit line for irrigation investments
Source: BN Americas
By: Javiera Gracia
Argentina's state-run bank Banco Nacion opened a new credit line to finance irrigation investments, the government announced in a press release on its website.
The new line was opened after a recommendation from the Federal agroindustry ministry, and is meant to give continuity to a similar credit line opened last year, according to the statement.
This measure will boost sustainable agricultural production and also stimulate production in small and medium sized agroindustrial companies. The new credit line will be able to finance investments for both mechanized and non-mechanized irrigation systems, which may include the drilling of water wells.
The financing will be available in pesos, index linked units (UVA), and US dollars. Terms range from seven and 15 years, with investment rates that will start at 15% for loans denominated in pesos, 5% in UVA, and 4% in US dollars.
On top of that, the grace period to repay the capital can be extended in 18 months, depending of the project that is being financed, according to the government.
The loans for irrigation are part of a bigger loan initiative launched by Banco Nación, which includes lines for agriculture, transportation, real estate development, and infrastructure projects that are being developed by municipal governments.
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