March 3, 2006

Banana farmers owe Association $14 million

While the Banana Growers Association (BGA) has a long-term debt of $9 million, some farmers are still owing that institution $14 million. {{more}}

Cecil Ryan, Chairman of the BGA, said this is one of the challenges confronting the institution.

Ryan disclosed that despite the fact that Government took over $14 million of the BGA’s debt in 2001, the institution was still servicing a long-standing loan of

$9 million and a current operations loan of $3 million.

He said the low production of bananas was affecting the flexibility of the BGA since it cannot get the required income to cover the overhead expenses.

Ryan stated the BGA is trying to manage its debt so that it does not get out of hand; however, the industry is facing a grave challenge caused by the shortage of farmers producing bananas.