Since May, 1 million credits have been offered to combat the ‘drop by drop’ – Sectors – Economy

As EL TIEMPO had anticipated on February 21, the National government, the Bicentennial Group and Banca de las Oportunidades officially launched a strategy to promote the placement of one million credits for microentrepreneurs who currently do not have access to formal financing.

With this strategy of credit inclusion of the popular economy, it seeks to overcome the obstacles to access to formal credit and in this way combat the ‘drop by drop’ modality in the country.

(Also read: Do you need to renegotiate your credit terms? Keep these tips in mind)

According to the Dane Microbusiness (Emicron) survey, at the end of 2022, only 30 percent of the 5.3 million microbusinesses in the country had formal financing. In addition, one in four micro-businesses that applied for a loan did so through the ‘drop by drop’ method. This number has been growing since the pandemic.

«Itinerant businesses, shopkeepers, recyclers and low-income agricultural producers need access to financing and develop financial capacities to grow their businesses or productive projects, many of them are at the mercy of ‘drop by drop’. For this reason, we seek to offer different alternatives that become the gateway to the financial system.”, said Paola Arias, director of Banca de las Oportunidades.

As explained by the Minister of Finance, Jose Antonio Ocampofrom May and during this year it is expected to deliver 100,000 credits and between 2024 and 2026 there will be 300,000 each year in order to achieve the goal of one million credit operations.

In addition, he said that in the short term the money to offer these loans is already guaranteed, but in the increased budget filed in the Congress of the Republic, some resources will be maintained for this program and also there will be future validity to guarantee its continuity.

(Also read: ‘Credit peso a peso’, the initiative of the District to end the ‘drop by drop’).

Credits for rural microenterprises

The Fund for the Financing of the Agricultural Sector (Finagro) and the Agricultural Guarantee Fund (FAG) have available 34,000 credits for rural microenterprises for this year for up to 4 million pesos and for a period of 24 months.

Finagro has up to 7 trillion pesos to mobilize in the different lines of credit by 2023, including associative and integration schemes.

– Concession funding: the rediscount rate will be IBR NMV -1 percent, at least 50 percent of the quota will be for women, and there will be a 10 percent interest rate subsidy.

– Incentive for good pay: 5 percent capital payment when paying off 70 percent of the debt.

Credits for urban microenterprises

This year Bancóldex and the National Guarantee Fund (FNG) plan to grant 66,000 loans for micro-entrepreneurs in urban areas for up to 2 million pesos and for a term of 12 months.

– Concession funding: The rediscount rate will be IBR NMV -2.7 percent and IBR NMV -3 percent for women. A 5 percent rate reduction also applies.

– Incentive for good pay: 8 percent capital payment when paying off 70 percent of the debt.

The national government also seeks to bring financial service providers closer to the population. For this, in April the popular economy fairs will be launchedthat will bring the offer of products and services closer and will provide advice and financial support to Colombians who live in the most remote areas of the country.

Likewise, the Bicentennial Group will launch an awareness program to promote formal credit and make known the disadvantages of informal financing mechanisms (‘drop by drop»), the benefits of growing through the credit products of the formal financial system and the new products that opened the doors of financial inclusion to the popular economy.

ECONOMY
TIME