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Over 1,000 farmers in Peru in danger of losing their land

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© La Republica

(LIP-ir) -- With a total debt of over 25 million soles, over one thousand farmers in Peru are in danger of losing their land because of loans they are behind on or unable to pay.

Natural disasters such as earthquakes and floods forced many farmers to put up their land as collateral for loans they are now unable to pay, resulting in the loss of their most valued possession.

One case is that of Delia Garibay, a 59-year-old woman with four children who took out a loan with Valle Grande, an NGO in Cañete, Lima.

With just $200 left to pay, Delia was not told that her loan had been transferred to Interbank, a Peruvian financial group.

In approximately four years, Delia owed Interbank $3,196. She agreed to pay the loan as long as she was allowed to keep her 3.5-hectare piece of land.

By renting the land and working several other jobs to survive, Delia began paying off the debt. Just four months before making her last payment; Delia was told that her farm had been sold.

"The bank manager, Rafael Carnero, told me I didn't need to sign any papers so the land would not be sold and I trusted him", said Delia, unable to hold back her tears.

Elizabeth Martínez, president of the Farmers Association in Cañete affirmed that the problem for farmers was not paying off the loan, but being able to find a way to keep up with high interest rates.

According to Peru's Bank Superintendency (SBS), there were 1,191 farmers across the country that were involved in legal proceedings for not being able to pay their loans.

The money owed was registered at 25,250,611 soles.

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# Capitan Dan says :
27 February, 2008 [ 15:54 ]

This is a disgrace, How can this be legal? I think we need to plant more trees in Peru and use them to hang people like Rafael Carnero. I will pay for the rope.

# Life is not about money says :
28 February, 2008 [ 07:48 ]

This is bad: These banks are criminals,taking advantage of the poor to better their prospective,Lets make this a International Global interest to support these farmers and cut these particular Banks\ Finance Robbers out of bussiness.

All peruvian farmers and landowners need to reconsider their future prospectives of using these banks in future. Get legal bindings on properties\land buys or ownerships. Invest your money off shore and get better interest and more for your soles or in another state eg chile,columbia,argentina,Bolivia etc

These banks are only interested in taking peoples land from them,using these lands for investments deals to make a profit,their methods are not based on the means of helping people, but to take advantage of others weakness and despair.

I have to say this is Highway robbery.   To the 59year old peruvian woman and 4 children and many other (peruvian that are victims of this kind of profitteering greed )  i will give you ses 3,5 acres of land for nothing & for free,with no financial attachment and free legal ownership for life,which i know will be for the creations of the,present & future generation to come

so try that for size  Mr Rafael  Carnero  what you take away from others,i hope you remember for the rest of your life

# Rev says :
28 February, 2008 [ 09:27 ]

(Thank to: Life is not all about money for informing me of this New-statement)      These people try hard,with the little given to them in means,to make a life for themselves and the survival of their families thru the hardships of what they have to go through,just to have the selfishness of others come into these peoples lives, to take it all away from them,that they have given their lifes- efforts to achieve, [ is this how you make the world a better place to live in]
  I also hope that these people,who live off the pain and suffering of others, do get to sleep well at night and enjoy the pleasantries of their effect s of suffering caused to others.

 To the lady (Delia Garibay) if you are reading this and i hope, i spelt your name right,  We will be in touch with you via the F.A  and see what can be done in seeking a resolution to these major issues,again the offer mentioned,( by the previous advertiser) i can confirm & be the guaranter to that statement made,which was made generously made on my behalf also,will have international Worldwide(Global) Support and Interest.

# jb says :
28 February, 2008 [ 11:44 ]

This same thing has repeatedly happened to small family farmers in the US.  I know because I am from the Dakotas and I know many of my classmates in school whose familes lost their farms because of inability to re-pay the loans they had taken out to buy farm machinery...like tractors etc.  The public auctions at their homes were a sad scene.  Some fathers committed suicide as they were no longer able to provide.  Others took jobs as a car mechanic or janitor etc.
The sad fact is that most small family farmers are not good business people.  They generally know how to grow crops...and that's it.  When some slick banker stops by and says he can get him a new combine, tractor and what the hell, why not a new Ford F150 pickup while were at it, well its like mana from heaven. 
Here in the 3rd world, the only way to make these small "loans" is to call them what they are -- outright grants.  The likelihood of a scratch subsistent farmer repaying a loan is very small.  Thats why Alan Garcia's "AgroBank" concept cannot work.  The loans won't get repaid.  It becomes another form of welfare.  So don't call it a "loan".  Loans get repaid. 

# Worldpress says :
17 March, 2008 [ 16:24 ]

Coruption at its best

These poor people landowners\Farmers|Familys are being victimized by Greed,Profiteering,Coruption.

Time to bring this to Worldwide Attention

Peru  has no idea what they are about to Lose control of:

The influence of Foreign Control will Eradicate your indipendance in no time

Don't say your have not been warned

# jb says :
17 March, 2008 [ 17:13 ]

Unfortunately, Peru is not an isolated case.  It happens everywhere (including the US) and just about no one gives a s**t.  Bankers take advantage of people who do not understand finance. Their only asset is their land. Now the bank has their only asset.  In many cases they knew the banker - a local. 

# Worldpress says :
17 March, 2008 [ 17:49 ]

Peru needs a Government that will protect the Peruvian Indigenous Cultural Rights of Occupation,before Peru end up loosing control.

Many Foreign Interests of Investment will dominate the standards of Compliance and peru will have a huge price to pay. Look at what dopy american has done to the themselves and where by have effected other part of the world.  Dome s day is only around the corner

# Tolduso says :
17 March, 2008 [ 18:08 ]

Well America (good job) your big headed knowall,think your are the best in the world, have now kicked yourself in the ass and has set bad presidence worldwide Financially.

Domes day is surely just around the corner:

# Agro Reform says :
17 March, 2008 [ 18:45 ]

Well, Velasco did just the opposite.  He expropriated land from large efficient farms and gave it to uneducated laborers that had been working the land. Wildly popular at the time as all populist ideas are but incredibly stupid.  Oh, yes, some of Velasco's buddies got nice chunks of land too.  Yes, these "rich" land owners were paid by the government...in non-tradable bonds that would eventually become worthless by the government's inflationary policies.  All one has to do now is look to Venezuela....22% inflation.  Because of Velasco's policies alone, Peru is 20 years behind Chile in agro production. 

FROM WIKIPEDIA: During the Velasco regime, the Peruvian government owned fishing corporation, PescaPeru, aggressively overfished the anchoveta, used primarily as material for fishmeal production and a key element in the Peruvian sea ecosystem, which resulted in record production for a couple of years but eventually led to an absolute collapse that took over 10 years to partially recover, while the badly mismanaged agrarian reform resulted in the creation of thousands of capital-poor and mostly uneducated small farmers whose production and distribution capacity fell substantially short of the pre-reform production.  This, coupled with the trade restrictions, led to periodic shortages, rationing, and increased social unrest.

Turn on the news....watch Venezuela, Bolivia.......populism is always "feel good" politics.  Politicians like Hugo Chavez and his croneys will always tell their followers that the source of their problems are the rich, the US, Israel, Peru, Colombia etc, etc, etc, .... it makes the masses feel good because it's never because of their own ineptitude, corruption, failed policies or stupidy.