Published and draft legislation - Colombia

Compilation of agricultural credit regulations

CNCA Resolution 1/2016, 2/2016, 3/2016 and Finagro regulatory circulars

This year CNCA, the Comisión Nacional de Crédito Agropecuario (National Agricultural Credit Commission), has set itself the task of compiling all the regulations that apply to the agricultural and rural credit in Colombia.

National Agricultural Credit Commission (NACC)

NACC has issued its first resolution of the current year Resolution 1/2016, laying down the definition of agricultural and rural development credit, activities that can be funded, beneficiaries, financial conditions for these credits, matters relating to the standardisation and purchase of this type of portfolio and the mechanisms for oversight and tracking of investments financed with this line of credit.

Resolution 2/2016 unified the regulations in the Agricultural Guarantee Fund (Fondo Agropecuario de Garantías), AGF, which establish: i) which transactions can be secured (and which cannot) by the AGF; ii) the AGF’s annual Plan; iii) the individual and total limits on AGF guarantees; iv) conditions applying to the titleholder of the collateral; v) how the collateral is issued and the period it covers, and vi) paying the guarantee.

Meanwhile, Resolution 3/2016 brings together the regulatory provisions on the Rural Capitalisation Incentive (Incentivo de Capitalización Rural), RCI. The key aspects of this regulation address: i) those who can access the incentive, ii) the value of the incentive; iii) the conditions for receiving the benefit, and iv) the application procedure for the incentive. This Resolution also regulates matters concerning Special Lines of Credit (SLC), which contain a subsidy on the interest rates applicable to National Agricultural Credit System credits that are granted and rediscounted through financial intermediaries.

Finagro

FINAGRO has issued a series of regulations for financial intermediaries in response to these resolutions. The regulatory Circulars updating its Service Manual are numbered as follows: CR P-3-2016, CR P-4-2016, CR P-5-2016, CR P-8-2016 and CR P-9-2016.

With the re-issue of this compilation of regulations on agricultural and rural credit, credit brokers and the recipients of financing are protected by a more robust regulatory framework.