Chile: Drought causes bankruptcies and auctions in the IV Region agriculture

Chile: Drought causes bankruptcy and auctions in the IV Region agriculture

28/04/2015

Given the serious debt situation that overwhelms agricultural producers, the Agricultural Society of the North [SAN] has made various efforts to get support to allow the re-programming of debts and re-investment to continue with the item.

"This is a cross-cutting situation that affects small, medium and large producers, but not only their families, but thousands of peasant families who had their main sustenance in agriculture. This is the reason that as Sociedad Agrícola del Norte motivates us to continue looking for urgent solutions that allow us to continue with regional agriculture"Said María Inés Figari, president of the SAN.

The Agency reported that, due to the lack of implementation of measures to resolve the debt, the process of bankruptcy of historic companies in the area has begun.

Daniela Norambuena, executive secretary of the SAN, stated that "7 cases of bankruptcy of companies in Valle de Elqui corresponding to medium and large producers are publicly known, 100 small producers of the Palqui sector have been notified of auctioning by banks and 2 cases of bankruptcy in Limarí of pioneering agricultural companies and leaders of regional fruit growing".

"As a whole, we are talking about more than 3000 unemployed people in recent months due to the closing of fields that could have an increase during the next season", He said.

The SAN indicated that it will look for the conformation of a technical table to develop a financial answer to the delicate situation of the regional agriculture that allows the farmers to continue with their activity.

"The Banks, by regulation of the SBIF, are obliged to accelerate the payment of credits or request the bankruptcy of the agricultural companies that can not prove cash flows to comply with the service of their liabilities, however willing and willing there is in these entities. The above is very evident because in recent years the productive base of our plantations has deteriorated due to aging, frost and, most importantly, the lack of water resources, which does not allow us to have the resources to service the debts contracted"Explained José Corral, vice president of SAN.

"What we want to build is a financial tool that requires not only political will on the part of the State, but also resources that allow financial entities to make the corresponding liabilities more flexible and re-program. Additionally, we need to be able to build a loan tailored to agriculture that can respond to the cycles of this activity and be able to re-invest to ensure the cash flows that allow the viability and sustainability of our agricultural operations."Added Corral.

For its part, Norambuena called for creating a table of unity and commitment to save agriculture, and that producers who are affected provide information of their financial statements to request help with accurate data, all with protection of their identity if so they prefer it

Currently, the SAN Board of Directors is managing meetings with the Superintendency and Banks Association, as well as CORFO and Ministries of Finance and Economy to create the technical table for agricultural financing.

Source: Fruit Portal