A New Loan Opportunity at DFC for Fisher Folk

Today, licensed artisanal fisher folk were drawn into a pilot project with the Development Finance Corporation and key conservation NGOs. Before today, fisher folk could only access loans if they possessed land title collateral. But through this project, financing is being made much easier for these micro businesses that rely on marine resources to earn a living. News Five’s Marion Ali was at a meeting involving the relevant parties and filed this report.

 

Marion Ali, Reporting

The room full of NGO representatives, licensed fisher folk and the C.E.O. of the Development Finance Corporation discussed a new initiative designed especially for fisher folks. It falls under an upcoming Resilient Bold Belize project. This new loan program will support licensed small-scale fishers who wish to switch to more sustainable equipment, new boats, and other capital needs assistance with diversifying into non-traditional fisheries.

 

Henry Anderson, C.E.O., Development Finance Corporation

“What we did was to look at different levels, different collateral requirements, and at some levels it doesn’t require collateral, it requires a promissory note. At other levels, you take a bill of sale, it’s over the engine, and then you could get a guarantor. And then for the much bigger loans, then you get into, you must provide collateral. So that’s to make it more inclusive. The interest rates are between eight and a half to 12 percent. The lower end is for women.

We’re trying to get more women into the fishing industry.”

 

One of the organizers of the initiative is the World Wildlife Fund, represented today by Juliet Neal. She said that part of the loan program would be based on character, hence fishers who break the law will be monitored.

 

 

 

Juliet Neal, Conservation, Finance and Policy Officer, W.W.F.

“Demonstrating good character is a person who does not break the law, who does not have a history of doing so. And as you will hear from a lot of the fishers in the area, they want fishers to be fishing in grounds that are following the law. So I believe that even fishers would be pointing to, encouraging the fisheries department to ensure that those who are getting licenses are compliant with the law.”

 

 

Norman Castillo is the President of the Hopkins Fishermen’s Association and the President of the Glover’s Reef Marine Reserve. His association also includes women.  Castillo expressed frustration over the fact that prior to now, fisher folk have been left on their own to fend for their livelihood.

 

Norman Castillo, President, Hopkins Fishermen’s Association

“There are nothing given to the fisher folks in this country with the exception of meeting, meeting, meeting, consultation, consultation, but nothing back to the fisher folks. There are several people in this country that get grants, but fishermen do not get anything. The protection is that is our livelihood. We have to protect that for us to survive. We have to protect our area. The loan itself now is a great initiative and I hope you go to, in terms of saying, as I have just said, for minimal percentage of rate, but fishermen are eager and honestly wanted to get that loan going forward and we need that loan because this will be the first time again in history of fishing that we get something, if we do get it. Cooperatives are no help to fisher folks in this country. Cooperatives only buy and sell.”

 

D.F.C’s Chief Executive Officer, Henry Anderson explained that this project is a part of a much bigger initiative which involves the development of a Project Finance for Permanence, or PFP, a financing mechanism aimed at attracting resources to take care of protected areas.

 

Henry Anderson 

“The PFPs that you find you have, I think Costa Rica has, you have for Brazil, like in the Amazon, there is none in the blue space. So what Belize is doing right now, this is a first in the world, that PFP will come alive perhaps at the end of this year – early next year. But the testing of this pilot is to give the loan, give training, work with the conservation of the area to ensure that the fishers are adhering and providing data in terms of the sustainable fisheries management of that area. And you’re getting training in how to manage your loan, how to make your business more profitable, how to understand their numbers and everything like that. So, it’s a holistic approach aimed at improving firstly the livelihood of the fisher folk, because it’s about people, and then obviously to get them to protect the area where they live from.”

The loans will extend for periods of twelve months to seven years with interest rates up to twelve percent, with lower rates for women fishers. Marion Ali for News Five.