Colombia: Resolution No. 6 of 2014 – Special Credit Line for Family Farming

Resolution of Colombia's National Agricultural Credit Commission establishing a Special Credit Line to promote financing for family farming, administered by the Fund for Agricultural Sector Financing (FINAGRO). The line targeted small-scale producers exclusively and financed production and maintenance costs of family farming units while seeking to expand access to formal credit among producers who had previously lacked such financing. The instrument established a preferential interest rate equivalent to the effective annual DTF rate plus one percentage point, together with a six-percentage-point interest-rate subsidy on outstanding principal financed with resources from the Ministry of Agriculture and Rural Development. An additional first-credit incentive was available for small producers without FINAGRO-registered outstanding loans during the previous four years. The credit line could finance up to 100% of production and maintenance costs, subject to a limit of twenty statutory monthly minimum wages and a maximum term of twenty-four months, and loans could be backed by the Agricultural Guarantee Fund (FAG).