27 March 2020 – Economic incentive program for agricultural products and food supply

Type of Intervention: Executive Order, Financial and Economic, Specific Action
Sectors Involved: Supply Chains, Agriculture
Level of Jurisdiction: National
Lead People/Agency: Decision made by President and Cabinet of Ministers

Banco Agrario de Colombia SA, and Finagro leading the implementation

Overview: An economic incentive is created for workers and producers from the countryside and other measures are adopted to guarantee the permanent functioning of the supply system for agricultural products and food security throughout the national territory, within the State of Economic, Social and Ecological Emergency.

Given the effects on the agricultural sector due to the Economic, Social and Ecological Emergency , with the social purpose of facilitating the recovery of small and medium producers so that there is liquidity in the Colombian countryside, Banco Agrario de Colombia SA, and Finagro, are empowered as administrator of the Agricultural Guarantee Fund (FAG ), to enter into recovery and portfolio payment agreements for agricultural producers, which may include the cancellation of current interests.
Full details here: https://coronaviruscolombia.gov.co/Covid19/docs/decretos/minAgricultura/125_decreto486.pdf

Other links: 1
Type of Justification: Advice of INTERNAL government advisory committee or group
Source of Evidence or Justification: National – government
Evidence/Justification: That in order to alleviate the financial burden on those farm workers and producers who are affected by the Economic, Social and Ecological Emergency, it is necessary to create financial instruments through which the credit establishments of the Agricultural Sector can enter into recovery and payment agreements for Past due portfolio.

It is necessary to implement instruments to reduce the costs associated with credit that allow the continuity of productive activities for farm workers, as those responsible for the supply of food in the national territory, in order to promote national food security.