PCM-54-2023

This decree restores BANADESA's original governance structure by eliminating the temporary administration that was paralyzing it. It creates a Board of Directors with representatives from key government institutions and appoints an Executive President so the bank can operate efficiently and provide loans to farmers and small businesses, ensuring the country's food security.

Whereas the Constitution of the Republic determines that the President, as holder of the Executive Branch, exercises it in representation and for the benefit of the people, being responsible for directing the general policy of the State and representing it, as well as issuing agreements and decrees and issuing regulations and resolutions in accordance with Law (articles 235 and 245, numerals 2 and 11).

Whereas the General Law of Public Administration determines that Public Administration is Centralized and Decentralized. When the expression Public Administration is used in the text of said Law, it is understood that it comprises the two (2) types of administration mentioned (article 2).

Whereas the General Law of Public Administration establishes that Public Administration has the purpose of strengthening the Rule of Law to ensure a politically, economically, and socially just society (article 5).

Whereas the General Law of Public Administration provides that the President of the Republic is in charge of the supreme direction and coordination of the Centralized and Decentralized Public Administration and may, in the exercise of their functions, act by themselves or in Council of Ministers (article 11).

Whereas the General Law of Public Administration establishes that the Council of State Secretaries has the power to create, modify, merge, split, or eliminate dependencies of the Public Administration (article 22, numeral 3).

Whereas by Decree No. 903, issued by the Military Junta of Government in Council of Ministers dated March 24, 1980 and published in the Official Journal "La Gaceta" on March 28, 1980, in its edition number 23,067, as well as its reforms contained in Decree No. 31-92 dated March 5, 1992 published in the Official Journal "La Gaceta" on April 6, 1992, the National Agricultural Development Bank (BANADESA) was created as an autonomous institution of indefinite duration with its own legal personality and capacity, which has the objective of channeling financial resources for the development of production and productivity in agriculture and other related activities.

Whereas Legislative Decree number 27-2020 dated March 12, 2020, published in the Official Journal "La Gaceta" on June 10, 2020, in its edition number 35,279, suspended article 5 of the Law of the National Agricultural Development Bank (BANADESA), contained in Decree No. 903 dated March 28, 1980, a measure that was adopted at that time with the purpose of replacing the Corporate Governance of the Institution. This intervention resulted in the paralysis of the credit recovery process, the monitoring of investment processes, weakening of internal controls, reduction of personnel, limiting the performance of fundamental activities of the bank for the development of the agricultural sector and support for MSMEs.

Whereas by Decree No. 903 creating the National Agricultural Development Bank (BANADESA) and Decree 31-92 containing the "Law for the Modernization and Development of the Agricultural Sector," the form of Corporate Governance of the National Agricultural Development Bank was correctly established.

Whereas as a result of mismanagement, the failure to comply with the control and monitoring processes of its operations, and the aforementioned failed intervention process, the National Agricultural Development Bank (BANADESA) finds itself in a serious institutional situation. For the foregoing reason, what was originally established in Decree No. 903 and Decree No. 31-92 must be resumed, in the sense that the Superior Direction of the Bank (Corporate Governance) be correctly assumed by a Board of Directors composed of the public institutions that are governing bodies in the matter. Likewise, the appointment of an Executive President and an Executive Vice President must be made.

Whereas in accordance with the Constitution of the Republic, agricultural production must be directed preferentially to the satisfaction of the food needs of the Honduran population, within a policy of adequate supply and fair prices for the producer and consumer (article 347).

Whereas by Executive Decree number PCM 04-2022 published in the Official Journal "La Gaceta" on April 6, 2022, in its edition number 35,892, the agricultural sector was declared a national priority and a matter of public interest. The Executive Branch and other related sectors must contribute their efforts to implement efficient and effective actions for the strengthening of said sector, in order to guarantee food and nutritional security for families in conditions of poverty and extreme poverty (article 1).

Whereas the National Agricultural Development Bank (BANADESA) is a fundamental pillar for the development of the agricultural sector and financial support for MSMEs in the country, whose fundamental activities for the production, processing, and storage of products necessary for the basic food basket are closely linked to ensuring food sovereignty, representing an instrument to ensure equity in credit access to key productive sectors related to quality of life, job creation, and the reduction of forced migration flows.

Whereas it is urgent for the national interest that the National Agricultural Development Bank (BANADESA) have an institutional structure that guarantees its operability and administrative efficiency, in order to fulfill its function of channeling financial resources destined for the development of production and productivity in Honduran agriculture and other related activities.