Published and draft legislation - Colombia

Agricultural risk management

FINAGRO Circular P-29 /2018

The Agricultural Finance Fund (FINAGRO) has amended its Service Manual on risk management instruments in the agricultural sector, publishing these changes in Circular P-29/2018.

The Manual regulates agricultural and rural credit; this circular introduces amendments to the sixth clause, on risk management instruments in the agricultural sector:

  1. It updates the sum available in 2018 for incentivizing agricultural insurance through subsidies on premiums, which is part of the Annual Agricultural Risk Management Plan, bringing it up to about EUR 9,144,000.
  2. Insurance companies must submit a digital copy to FINAGRO of the cover-page of their policies and the appendices to these.
  3. Any amendments to policies should be explained and accounted for by the insurance company, using the appendices available for this purpose.
  4. The deadline for FINAGRO to pay the agricultural insurance Incentive (ISA) has been changed, to take into account the availability of effective resources in the National Agricultural Risk Fund's accounts.

With these new stipulations, FINAGRO will continue to support the development of Colombia's rural sector and to provide resources in favorable conditions to other financial institutions, so that they can originate credits for productive programs.