Wednesday, 26 January 2022 00:55

Agricultural Commission rules in favor of suspending embargoes to coffee growers

Written by Evelyn Alas

The deputies of the Agricultural Commission issued a favorable opinion containing the "Special Transitory Law for the Suspension of Embargos for loans granted to the Coffee Production Sector", which seeks to bring financial relief to this sector.

With these transitory provisions, the Legislative Assembly intends to contribute to the reactivation of the coffee sector, through the suspension of liens for debts contracted with the Fondo de Emergencia para el Café (FEC) and the Fideicomiso Ambiental para la Conservación del Bosque Cafetalero (FICAFE).

The approved ruling indicates that, from january 1, 2022 until december 31, 2024, the payment of capital and interest on debts contracted with funds from FICAFE and FEC, applied to payment installments from 2013 and subsequent years, will be eliminated. In addition, the accrual of interest contracted with the aforementioned entities will be suspended during the same period.

For the study of this project, the Agricultural Commission received the Vice Minister of Agriculture, Lily Pacas, who explained to the legislators some of the strategies that the institution plans to implement to reactivate the coffee sector.

They highlighted that the transitory regulation is necessary due to the fact that, in the last decade, at international level, the price of coffee has shown a downward trend, which has affected producers and their families.

Through the coffee industry, more than 50,000 direct jobs and 200,000 indirect jobs are generated, which is why the legislators were in favor of approving the initiative presented by the Central Government, through the minister of Agriculture, David Martinez.