Financial Superintendence of Colombia highlights credit pact progress and urges cost-cutting to lower agricultural lending rates

The Financial Superintendence of Colombia reported remarks by Superintendent César Ferrari at a forum on public policies to promote associativity and cooperativism in the agricultural sector, where he argued that greater collective organization can expand development opportunities for Colombian agriculture. Ferrari pointed to agreements reached with banks under a “credit pact” that has been in place for eight months, stating that the targets set under the pact have been met and that agriculture is one of the prioritized sectors. He also urged changes to the operating model for extending credit, warning that raising interest rates could increase delinquency and instead calling for cost reductions to enable lower lending rates that support the profitability of the rural economy.