Banco República (BROU) released the adjustments that were established for the credit lines of the Dairy Guarantee Fund (Fogale), a tool that dairy producers referring to the industry can access.
Justino Zavala, president of the Canelones Drum Association, commented to The Observer that although it had already been announced that adjustments would be made to the Fogale, “it had to be brought to life.”
“The important thing is that the ceiling it has, which is a ceiling per producer of US $ 200,000, is much more than the previous ceiling, which was US $ 70,000; it is an important difference ”, he emphasized.
The destination of the credits was one of the points on which Zavala emphasized. Now the Fogale funds can not only be used to refinance debts, but also include a working capital and investments and refinancing, which were alternatives that “had been left a bit hanging, because the previous Fogale had a limit in the time that just it expired, “he added.
A change for producers
Zavala said that the updates that are presented in the BROU instructions (see the same later) had already been discussed, and are now being put into practice. Although he said that this is very positive, he added that “obviously it does not solve the problems of the sector, because this is a loan and for it to be paid (the dairy farmers) have to be well and have a margin, which is now quite complicated.”
The producers are satisfied, he mentioned, because “it is a fund that was underway, but stopped, that had no use.”
As he commented, it is a good tool, which will be used to the extent that the sector has the given conditions to work.
“Ultimately, this was what we had asked for, that this guarantee fund be at the service of the producers’ credit and not just refinancing for new loans. We are satisfied, let’s see now, this has to be part of a much broader package of measures that we hope will be resolved in the coming months ”, he concluded.