New Interest-Free Loan Scheme for Cooperatives to Support Businesses

The administration of President Bernardo Arévalo has launched a new soft credit program in Guatemala designed to support micro, small, and medium enterprises (mipymes) involved in the production and distribution of the basic food basket.

The initiative, coordinated through the Ministry of Economy, establishes a mechanism where cooperatives can access loans without interest charges. In exchange for these interest-free funds, the cooperatives must commit to channeling the resources toward mipymes that contribute to the supply of essential goods.

This financial strategy aims to stabilize the cost of the basic food basket and address economic pressures associated with fuels, with the ultimate goal of supporting the family economy across the country.

Elizabeth Ugalde is associated with the implementation of the plan, which utilizes quetzales for the credit disbursements. By providing these soft credits, the government intends to reduce the cost of capital for small-scale producers and distributors, who are critical to the stability of essential commodity prices.