Loan capital for farmers
AD - Microfinance capital for rural productive enterprises
This investment consists of a general loan to PAC portfolio, which is composed for over 80% of rural enterprises. PAC uses this loan to provide production capital to member farmers and this service is complemented with technical assistance and trading services. The financial crisis and internal political circumstances have reduced the size of Nicaragua's microfinance sector. PAC has been able to survive the crisis but needs loan capital to provide credit to the farmers they are working with and to increase its income generation capacity.
Amount: USD 150,000 (loan)
Impact: 100 farmers received production credits
Goal and objectives | The main objective of the loan is to provide sufficient liquidity to PAC who in turn will provide microcredit loan capital to farmers. These loans will be used in the value chains that PAC is facilitating, especially in coffee and root/tuber crops.
The associated objectives are:
- Improve access to finance to economic actors in value chains of coffee and root/tuber;
- Improve the profitability and the competitiveness of the value chain;
- Create new jobs in the rural areas;
- Improve income generation capacity of PAC as a professional rural MFI that is in need of loan capital.