MADRID, 24 Jul. (EUROPA PRESS) -

BBVA announced this Monday a loan for farmers and ranchers whose production has been affected by the drought with a maximum repayment term of six years and with the possibility of a grace period in the first.

The entity has detailed through a press release that the amount of the loan and the conditions of the operation will be valued individually based on the needs and profile of the client, while the payment of interest will be quarterly (the loan allows quarterly, semi-annual and annual repayments).

This specific financing from BBVA can be complemented with the possible aid and measures that the state and regional administrations are adopting to minimize the effects derived from the scarcity of water resources, as well as agricultural insurance with coverage in situations of drought that are also offered from the bank itself, the entity has assured.

"These operations are likely to be guaranteed by SAECA (Sociedad Anónima Estatal de Caución Agraria), in its work of providing guarantees and sureties to facilitate access to financing for the primary sector as a whole," the statement added.

The entity has pointed out that water stress affects the entire production chain, especially the primary sector, and that, according to BBVA Research, the abnormal lack of rain and the deterioration of soil moisture during the first half of 2023 would have reduced the annual growth of the sector's gross value added by between 3% and 4% compared to an average climatic situation.

Likewise, it has predicted that, if these conditions continue during the coming months, the effects could be significantly greater.