CONAFIPS to Mobilize $155M for Farmers and Young Entrepreneurs

CONAFIPS will mobilize up to $155 million in productive financing for young entrepreneurs and small farmers through a credit-incentive program tied to its 2025 surpluses.

The program was approved by the CONAFIPS board and is aimed at improving credit access through lower interest rates, longer grace periods and alternatives for borrowers without real guarantees.

Program Snapshot

Finance Minister Sariha Moya said the policy was intended to move more resources into territories and sectors that historically face higher financing barriers.

The mechanism uses CONAFIPS as a public second-tier bank. It provides lower-cost funding to entities in the popular-and-solidarity financial sector, which then lend to final borrowers.

System Context

The popular-and-solidarity financial sector has around eight million users and manages more than $28 billion in assets. That represents approximately a quarter of Ecuador's financial system.

CONAFIPS board president Maria Belen Loor said the measure would strengthen the national cooperative system's role in channeling resources to productive sectors.

What to watch

• Whether the full $155 million is placed through cooperatives and mutualists.
• Whether disbursements reach the projected 30,000 small farmers and 8,000 young-led enterprises.
• Whether lower funding costs translate into lower final borrower rates.