PRESS SECRETARY
OFFICE OF THE PRIME MINISTER
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1- 473-435-7285
NEWS
RELEASE
Minister Gregory Bowen Makes Request to the
Commercial Banking Sector to Partner with the Government
to Assist in Financing the
Agricultural Sector
Wednesday 29th August,
2007, St. George’s : A three member team of the
Ministry of Agriculture headed by Minister Gregory Bowen met with
representatives from five commercial banks to discuss the development of a
framework through which the banks can partner with the Government to assist in
financing the agricultural sector. The other persons representing the
various institutions included Ms Lima Frederick (Acting Permanent Secretary)
and Mr. Aaron Francois (Planning Officer) of the Ministry of Agriculture, Ms.
Marcia Legendre – (General Manager of Credit) of RBTT, Mr. Kinsley Ashby of
Scotia Bank, Mrs. Jennifer Gittens and Mr. Jerome Thomas of Cooperative Bank,
Mr. Dion Moses of RBTT and Mr. Mervin Lord of Grenada Development Bank.
At that
meeting the Minister highlighted the measures taken by Government to assist in
the rehabilitation of the agricultural sector following the severe devastation
suffered from Hurricanes Ivan and Emily in 2004 and 2005 respectively that were
estimated at EC$200 million.
According to
Minister Bowen a total of EC$ 15 million was spent on farmers and farm workers
immediately after Hurricane Ivan to assist in the clearing of lands and in
stabilizing livelihoods in the rural communities. Several millions were also
spent on improving and rebuilding infrastructure and instituting critical
programmes. Some of these included the refurbishing of the propagating
stations, farm houses and agricultural district offices and procuring and
distributing inputs including tools, seeds and fertilizers. More recently
the Ministry of Agriculture has instituted a farmers’ loan scheme in which
farmers are able to access a maximum of $40,000.
Minister
Bowen and the Permanent Secretary told the banks representatives that farmers’
perception of them is one of anti-agriculture and that they both need to work
together to change that image. The Government officials of the Ministry
of Agriculture spent much time trying to explain to the banks some of the
dynamics of the agricultural sector including the plight of large farmers who
are not service by the $40,000 loan facility offered by the Ministry. The
banks were encouraged to consider innovate to help finance agriculture and
fisheries activities. The Ministry hinted that many farmers are staying away
from the bank because of the stringent conditions demanded by the banks coupled
with the high risks that characterize agricultural activities.
In response
the banks said that in several cases farmers making application for loan are
lacking information to allow the banks to make a proper assessment. The banks
representatives indicated that farmers are unable to provide sufficient
financial and technical information and very often they present proposals that
they themselves do not fully understand.
In addition,
the banks suggested that the Ministry of Agriculture make available to them a
strategic plan outlining the plans and programmes for the sector. It is
believed that providing this information would give the bank a better
opportunity to understand the agricultural sector so to know where best to
direct their investment. The Minister was further advised that the
Government should clearly outline what are the packages of incentives and
concessions it would provide to help reduce the risks involve in agricultural
activity and in so doing provide a greater level of comfort for the
banks. The bankers also encouraged the Ministry to share with them any
information on best practices in agricultural credit that they know of.
The bankers
expressed concerns in several areas including the need for greater enforcement
of the praedial larceny laws, need for guaranteed markets for farmers produce,
greater incentives to enhance farmer mechanization and role of agricultural
commodity organizations and agencies.
Minister
Bowen was assured by the bankers of their openness to consider concessionary
rate of interest to support agricultural development and their willing to
partner with the Ministry’s Extension Service to make farmers more aware of
banking requirements. One of the main points touch on is the need for
farmers and fisher folks to utilize the banks to manage their financial
resources and create a financial record with the institution.
By:
Planning
Officer
Ministry
of Agriculture