Mercapital receives financing to support small producers

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Managua, Nicaragua. April 13, 2018. The Development Promotion Bank (BFP), grants financing of US $ 1 million to MERCAPITAL through the program; Access of Credit in Rural Productive Chains of the Inter-American Development Bank (IDB).

The purpose of this loan is to increase the production of Robusta coffee and improve the quality of life of small producers in Nueva Guinea, through access to financing and technical assistance for the establishment of new coffee plantations.

This fund is managed by the BFP as a trust, with an inclusive and innovative vision, that through cooperatives and microfinance, supports the rural productive chains of milk, cacao, vegetables, Robusta coffee, fruits, tubers and oilseeds. Additionally, technical assistance is provided to the beneficiaries.

Baudouin Duquesne, representative of the IDB in Nicaragua mentioned how “in a country that mainly depends on agriculture, it is necessary to implement financial mechanisms that allow small producers to access loans to invest in new agricultural technologies and improve farm practices”.

Daniel Otazo, General Manager of the BFP affirmed that “this operation continues the success that the program has had in the last two years, bringing resources to rural productive chains. For us, as the executing agency of the operation, it is satisfactory that to date we have committed more than US $ 12 million in loans, US $ 2 million in guarantees and almost US $ 1 million in technical assistance, benefiting almost 2,000 small and medium-sized producers.

The operation that we run today is particularly important since it provides access to almost 200 small coffee producers to the productive chain of a leading company in the field. Due to this, and with the support of technical assistance, greater technical training and inclusion in this sector, that is so important for the Nicaraguan economy, is encouraged. ”

Mercapital is the financial arm of CISA Exportadora, through which technical assistance will be provided to producers for better practices, with the purpose of seeking greater yields and margins in their production.

“We are proud of the work carried out by CISA Exportadora and Mercapital together with coffee producers in New Guinea to develop Robusta coffee plantations. Our commitment to sustainability encourages us to offer solutions to coffee producers in order to increase their productivity, with financing and technical assistance being essential for their growth”, explained Mr. Luis Alberto Chamorro, Director of Origins of Mercon Coffee Group – Representative of Mercapital.

About the IDB

The mission of the Inter-American Development Bank is to improve lives. Founded in 1959, the IDB is one of the main sources of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research projects and offers policy advice, technical assistance and training to public and private clients throughout the region.

About the BFP

The Banco de Fomento a la Producción BFP promotes the development and competitiveness of Nicaragua through support of the productive sectors; fostering investment, entrepreneurship, technological innovation and contributing in a sustainable way to the country’s economic growth. In its role as a development bank, and through its first and second floor programs, the BFP focuses on promoting the economy and social welfare in all regions of Nicaragua.

About MERCAPITAL

Mercapital is the arm of CISA Exportadora that provides financial services to coffee producers in Nicaragua with agile response times and competitive interest rates. CISA Exportadora, a member of Mercon Coffee Group, is the largest coffee exporter in Nicaragua and serves more than 7,000 producer clients throughout the country.