Dominican Republic project 517021401 · 1987 · agriculture

Subproject (SP) to increase production of nontraditional crops in the Dominican Republic by creating a fund for onlending to private Dominican or joint venture agribusinesses, and through these entities, to contracted small farmer-outgrowers. The Reserve Bank (RB) will implement the SP. Supported by an A.I.D. loan and by peso contributions from the Government of the Dominican Republic, a fund will be set up in the RB, which will use the fund to create lines of credit for various commercial banks for onlending to agribusinesses. Those agribusinesses that purchase a significant percentage of their raw materials from small farmers will be eligible to borrow from the commercial banks to provide support (commonly called "bridge credit") to their contracted outgrowers in the form of cash; inputs such as feed, fertilizer, and pesticides; and services such as land preparation and/or technical advice by trained agronomists or horticulturists. At the end of the cropping period, the agribusinesses will calculate the balance of the credit extended to the farmers against the purchase price of the production that was accepted for packing and processing by the firm, and will settle accounts acc

Source: DEC abstract, PD-KAK-554 (1987). The source's own text.