By 25.01.2013
CAF project aimed at supporting production supply chains in Ecuador
Cooperation seeks to give rural producers' associations access to financial services.
(Quito, Jan. 2013).- CAF -development bank of Latin America- and Codespa Foundation -a Spanish institution specialized in development in the region- signed a technical cooperation agreement a feasibility study for the creation a trust fund to finance activities of producers' associations mostly based in rural areas of Ecuador.
For Hermann Krützfeldt, CAF country director in Ecuador, "the contribution to this kind of project increases opportunities for the least favored producers and confirms CAF's role as a promoter and reference in microfinance in the region."
CAF's support for this operation is based on the difficulties faced by producers, especially in rural areas, when it comes to access to financial services. This project complements the work carried out by CAF to strengthen production and trade along several production chains on a national scale.
Under this agreement, it will be possible to evaluate and qualify production chains that may be potentially eligible for financing, as well as assess the needs of associated micro-producers. In addition, studies will be conducted to determine the support that local financial institutions can provide to production chains.
Once the size of production chains and potential financing has been determined, a decision will be taken on the feasibility of creating a trusteeship.
Other public and private financial companies, as well as multilateral agencies and microfinance institutions are expected to take part in the trust fund's management.
CAF's contribution will be used entirely to finance the diagnosis, market analysis and design of this operation's financial architecture.
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