He credit of the Dominican financial system aimed at agricultural sector experienced a growth of 6.9% in 2022 equivalent to RD$ 6,803 million, which represents 11.5% of the credit portfolio business of the financial system.
According to the report on the behavior of the portfolio of the sector agriculturalpublished by the Superintendency of Banks (SB) the support of the financial sector to the agricultural productionwhose financing has experienced sustained growth in the last nine years.
According to the report presented in the framework of the National Farmer’s Daythe portfolio almost tripled between 2014 and 2022, going from RD$37,208 million to RD$105,062 million.
He Agricultural bank represents 34.3% of the agricultural portfoliowith a balance of RD$ 36,038 million as of December 2022, which positions it as the entity with the greatest participation in this economic sector.
The report indicates that the credit to the line agro-industrial and agricultural trade experienced a growth of 232% (RD$ 29,697 million) between December 2012 and December 2022. While credit to agricultural and livestock production grew 201% (RD$41,806 million) in the same period.
Regarding the characteristics of the clients, 44.7% of the agricultural debtors are classified as large companies, 23.2% as micro-enterprises, 19.2% are individuals with commercial loans for business purposes. agricultural and the remaining 12.9% are registered as small, medium-sized companies and other types of clients, the report indicates. It details that, in the Agricultural bank79.2% of the portfolio is concentrated in individuals and micro-enterprises.
Crops
As of December 2022, 21.6% (RD$ 22,709 million) of the total portfolio of the agricultural sector It was destined to finance the planting of cocoa, rice, bananas, coffee and avocado. The participation of cocoa and rice stands out, whose credits reached 81.6% (RD$18,539.3 million) among the five products.
Risk
According to the report of the SB, the index of delinquency in the agricultural sector it is below the average of the total commercial portfolio and with a downward trend consistently since 2019. As of December 2022, the indicator was positioned at 0.6%.
The guarantee coverage index was 55.1%, 10 percentage points above the commercial portfolio of the financial system, which shows that, for every 100 pesos lent, 55.1 are covered by admissible guarantees. “This demonstrates the intention of entities to hedge their risks,” according to the report.
Both for loans granted in national and foreign currency, the agricultural sector has a financing cost below the rest of the commercial portfolio
2023-05-16 03:28:42
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