MARM

(l-r) Spanish subsecretary of agriculture María Felicidad Montero and ICO president José María Ayala sign the credit line agreement

Spain’s ministry of agriculture and official credit institute have announced that €40m has been set aside to finance low interest loans to producers badly affected by this summer’s E.coli crisis.

Spanish growers will be able to apply, until 15 November, for up to €200,000 for three years, with a maximum rate of interest of 3.5 per cent under the ‘ICO-Horticultura 2011’ credit line scheme.

In a statement, the Spanish ministry of agriculture said the purpose behind the low-cost loans was to provide support to growers affected by the collapse in demand for fruits and vegetables as a consequence of June’s E.coli outbreak in Germany.

Welcoming the development, Clara Aguilera, regional minister for agriculture in Andalusia – one of the regions most affected by the crisis – said the injection of capital would provide “respite” for growers whose livelihoods were put in jeopardy by the fall in profitability of horticultural products.

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