Strategic alliances increase financial inclusion in Puebla

Achieving access to financing for a greater number of small producers has been one of the greatest challenges for the Development Bank, especially in the rural sector, due to the lack of guarantees and comprehensive schemes for the marketing of their products, as well as as tools for risk management.

The State Residence of FIRA in Puebla, with a current financing balance of more than 5 billion pesos, has managed to minimize the risk in the recovery of credits, making financing a more accessible, feasible and competitive product in the productive projects of small producers, relying on financial instruments to share the inherent risks with 43 financial institutions, the foregoing favors a greater incorporation and participation of producers in formal credit.

An important alliance between FIRA and the State Government has allowed the Investment, Administration, Guarantee and Alternative Source of Payment Trust, called “Puebla Fund”, to support with a fiduciary guarantee of up to 30% the productive projects of small producers, which that allows financial institutions that operate with FIRA to relax some of their requirements to access credit; To date, 29 projects have been supported with guarantees, reaching a loan spill of 136 million pesos in the entity.

Likewise, in the first half of 2020, FIRA signed a collaboration agreement with the Government of Puebla to launch the Financing Program for Medium-sized Agri-food and Rural Enterprises (PROEM); In just over 2 years, this program has made it possible to grant 700 million pesos of credit backed by this mutual guarantee.

The possibility of operating the Financial Inclusion Program for the Priority Population (PROIF) together with the State Government is currently being explored, which will allow serving MIPYME (micro, small and medium-sized enterprises) in the agricultural and rural sector of the entity.

FIRA continues to develop alliances with state and municipal governments; At the end of 2021, the Puebla State Residence promoted with the municipality of Chignahuapan the creation of a Municipal Fund in Support of the Interest Rate called “FOMATI”, which supports small and medium-sized producers in the municipality that receive a credit from FIRA through of its network of financial intermediaries, allowing the interest rate to be reduced by up to 3% per year; highlighting that this program is unique at the national level, where financing of 11 million pesos has been triggered in just 6 months, and there is interest from other municipalities in the State to replicate a similar scheme to generate greater growth in their regions.

With this type of alliance, these Trusts contribute to increasing financial inclusion, productivity and sustainability, reaffirming their commitment to continue innovating and promoting the development and economic growth of the Mexican countryside with modern financial instruments, credit and guarantees.

For more information, please contact the FIRA offices at the Puebla State Residence: www.fira.gob.mx

cgeron@fira.gob.mx

mtvaldez@fira.gob.mx

rcortes@fira.gob.mx

mramosn@fira.gob.mx