Aquaculture, fishing and the cultivation of tropical fruits concentrated 56% of the new bank loans for the agricultural sector – La Nación

Aquaculture, fishing and the cultivation of tropical fruits concentrated 56% of the new bank loans for the agricultural sector – La Nación

In the last year, these three activities received financing for a total of $1,782 million. The private financial system is responsible for seven out of every ten dollars delivered to the agricultural sector.

During the year 2022, banks placed 71% of the new loans to the agricultural sector, or the equivalent of $3,168 million in 2022.

This means that seven out of every 10 dollars placed in new credits for the agriculture, livestock, forestry and fishing sectors were granted by private banks. The total credit placed in this sector by the national financial system reached $4,445 million.

Meanwhile, 22% ($975 million) was placed by cooperatives, 6%, or the equivalent of $276 million, by public financial institutions (BanEcuador, Corporación Financiera Nacional and Banco de Desarrollo del Ecuador) and 1% ( $27 million) of the new credits were placed by the mutuals.

Three activities monopolized more than 50% of the private banking credit
The agricultural sector includes the exploitation of natural plant and animal resources, in addition to the activities of cultivation, breeding and reproduction of animals, exploitation of wood, among other related activities.

The new private bank loans to the agricultural sector in 2022 obtained a growth of 30% ($725 million more) compared to the amount placed in 2021.

In addition, significant growth is seen when it is revealed that the delivery of new loans exceeded the amount placed in 2019 by 75% (an additional $1,252 million), that is, it has exceeded pre-pandemic levels.

For its part, the number of operations for this sector in 2022 was 88,000, which represents an annual growth of 12% and 35% compared to 2019.

According to the Association of Private Banks (Asobanca), the new bank loans granted to the agricultural sector in 2022 were concentrated, above all, in the following three activities:

1. Marine aquaculture, with $1,114 million, 35% of the total. This activity includes sectors such as shrimp.

2. Cultivation of tropical and subtropical fruits, with $339 million, 11% of the total.

3. Marine fishing, with $329 million, 10% of the total.

If analyzed at the provincial level, agricultural credit was mainly destined for Guayas with 55% ($1,742 million), followed by Pichincha with 11% ($362 million), Manabí with 9% ($283 million) and El Oro with 8%, or the equivalent of $258 million. These 4 provinces add up to 83% of the total placed.

According to Asobanca, the support provided by private banks to this important sector of the economy allows “there to be a multiplying effect on other economic activities. In this way, the agricultural sector, according to the Internal Revenue Service (SRI), obtained sales of $19,357 million in 2022, this represents an annual growth of 13%, while its contribution to tax collection reached $642 million, that is, 36% more than in 2021«.

If you want to access more details about credit to the agricultural sector during 2022, you can access the latest edition of Lupa Crediticia. (JS)

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