Financing and Non-financial Services in the Agricultural Development Banking

Topic :

In the group of productive and social sectors which require with more attention the support of the development banking, maybe the agricultural and rural scopes, is one of the most dedicated and complex. In the first place, because of the social aspect, as always the rural areas have the highest levels of poverty; in second place, the political connotation that the problems associated to rural places (country) always have and that it is very sensitive to political decisions which lead to interferences in the agricultural development financing institutions. A third aspect, has something to do with the own nature of the agricultural activity, its high risk makes the banks not to pay great attention to it, even more when this are small producers.

In this document, are discussed a series of elements related to the characteristics of the agricultural financing, the operative modalities, ways of acting, provision of non-financial services, and finally some suggestions and recommendations which can help as references to the agricultural development financial institutions and to the organizations related to negotiations and supervision of the same.

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