Camposol's financial manager, Jorge Ramírez Rubio, points out that "in Peru, banks and financial institutions do not understand agribusiness, because they lend money with really high interest rates and expect quick repayments."
Jorge Ramírez used the example of avocados, which only start producing fully after five years, which means producers will have five years during which they will lose money, on top of having to repay credits, which makes things complicated.
Camposol's financial manager suggested that Peruvian banks should take Canadian banks as an example, as they give credits for 20 years with interest rates between 5 and 6%.
"The only guarantee avaialable to the applicant is the land itself where the crop will be grown, as it is the only asset that will not lose value, because it will always be there," explained Jorge Ramírez.
Source: Agraria.pe