Chile's BancoEstado has responded to the agricultural sector's difficulties with the launch of two new financing instruments in a bid to strengthen rural development.

BancoEstado vice president Roberto Palumbo made the announcement at the Rural Microenterprise Expo, with funding initiatives aimed at promoting investment in farming machinery and improving the livestock sector.

BancoEstado vice president Roberto Palumbo

Palumbo said the 'Equip Your Countryside' initiative would fund agricultural machinery and vehicles, as well as investment in construction materials and irrigation equipment.

The other initiative is called 'Buy Thin, Sell Fat' and will be available for the purchase and fattening of livestock, as well as investment in improving pastures and buying feedstock.

Palumbo said both loans would be granted with an amount of up to CLP65 billion (US$138.9 million) for a six-year term.

"We are leaders in the financial system with 416,300 microenterprise clients. Of those, more than 86,500 are agricultural producers, whose fields are attended to by our executives, providing the necessary assistance to support the successful management of their enterprises," he said.

Related story: Chile seeks investment to double cultivation

Photo: BancoEstado

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