President Andrés Manuel López Obrador sent to the Chamber of Deputies an initiative to extinguish the National Financing Agency for Agricultural, Rural, Forestry and Fisheries Development (NDF), under the argument that financial support to rural producers must come directly.
In the ordinary session of this Wednesday, the Plenary of the Chamber of Deputies received this presidential initiative at the last moment, which has already been referred to the Finance and Public Credit Commission for analysis.
The initiative with a draft decree by which the decentralized public body called National Financing Agency for Agricultural, Rural, Forestry and Fisheries Developmentand that repeals its organic law, states that its objective is to make public resources directed to producers more efficient, so that these resources are delivered directly to the beneficiaries, without intermediaries and without spending on unnecessary administrative infrastructure.
It should be noted that the history of this financial institution dates back to 2002, when Financiera Rural was created to replace the Banco Nacional de Crédito Rural (Banrural).
Later, in 2014, after a series of reforms to the Mexican financial system, its name was changed to Financiera Nacional de Desarrollo Agropecuario, Rural, Forestal y Pesquero, which is a decentralized body of the Ministry of Finance and Public Credit, with legal personality. and own assets.
Said body had the tasks of promoting the development of activities related to the rural environment, with the purpose of raising productivity and improving the standard of living of the population, through credits to producers and rural financial intermediaries.
However, the president’s initiative maintains that within the framework of article 16 of the Federal Law of Parastatal Entitiesthis decentralized body created by the Federal Executive has ceased to fulfill its purposes, objectives, and operation, in addition to no longer being convenient from the point of view of the national economy or public interest, for which reason it must be dissolved, liquidation or termination.
In this sense, it was argued that in the 21 years of its existence, this financial institution granted credits to a small number of producers, mainly through financial intermediaries and under a design that ignored effective collection mechanisms.
“As a result, today the FND is a stunted body, unable to meet its objective of promoting rural development, raising productivity and improving the standard of living of the population through credits to the sector,” the document dictates.
Likewise, it was detailed that the results of 2021 indicate that the percentage of credit granted through financial intermediation companies stood at 44.5%, with around 315 financial intermediation companies, which operated an amount of 21,422 million 710,000 pesos out of a total of 48,000 million pesos that it placed in that year.
Of which 198 managed loans in the middle, high and very high marginalization zone for an amount of 4,216 million pesos, which represented 19.7% of the total second-tier placement. The rest, 55.5% of the credits, was delivered directly to ejidatarios, producers and peasants.
In total, in that year 295,848 producers were served.
Due to the above, the project indicates that the liquidation of this Financial Company will be in charge of the National Institute to Return the Stolen to the People, who will act as the sole liquidator of the federal government, to this institute all assets, rights and obligations will also be transferred. While the Ministry of Finance, the Ministry of Public Function and the National Banking and Securities Commission, will monitor the liquidation procedure.
In addition to the fact that the FND workers must be liquidated in accordance with the law.
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