Bankia signs agreement with Saeca (Sociedad Anónima
Estatal de Caución Agraria) to provide financing to farm,
forestry and agrofood sectors
The situation in the sector, the crisis and the drought
were key factors in arranging this new line of credit
that provides farmers and livestock breeders with a way
out of the current difficulties
Bankia has launched the credit line "Drought 2012" for
farmers in Ávila and Segovia. This new facility arises from
an agreement with the public sector farm guarantee company
Saeca (Sociedad Estatal de Caución Agraria) and is
available for clients who are repaying loans under the farm
sector 2008 and 2010 line of financing backed by Saeca.
In 2008 the Spanish Ministry of Agriculture promoted a
credit line for improving the financial structure of the
farm sector. That line was supported by the regional
government of Castilla y León, which signed the relevant
agreement with Caja Segovia and Caja Ávila. In 2010, given
the difficulties faced by the sector the Ministry of
Agriculture promoted an addendum to lengthen the grace
period by another two years. Caja Segovia and Caja Ávila
signed the addendum in order to collaborate in supporting
Repayment of the principal of these loans begins over the
course of 2012 and, once again, the sector's situation,
the crisis and drought are making it extremely difficult to
meet those payments.
Given this complex situation facing the farm sector, which
is of capital importance to the local economy, Bankia has
decided to arrange this new line of credit to provide a
viable alternative for farmers and livestock breeders in
In addition, Bankia has decided to offer its clients the
possibility of restructuring their loans under this Line
without Saeca guarantees, adapting the structure of the new
financing to the needs of the borrowers who do not have
backing from Saeca.
Characteristics of the new "Drought 2012" credit line
The maximum sum to be guaranteed by Saeca will be the
aggregate of the new loan proposed, taking into account
that the first 40,000 euros will benefit from having
subsidy of their guarantee and administrative charges.
The economic conditions, maturities and form of repayment
of the new Line are being negotiated according to the needs
of the sector.
The operations formalised in the past by Caja Segovia and
Caja de Ávila under the previous drought credit facility
that is now being expanded amount to 14.6 million euros and
10 million euros, respectively.