Šiaulių Bankas is a leader among the banks in granting guarantee backed loans to farmers
Actively cooperating with the Agricultural Credit Guarantee Fund (ACGF) for more than 16 years Šiaulių Bankas has been actively issuing guarantee backed credits to farmers, rural entrepreneurs and agriculture product processors this year as well. The result of Q1 2016 showed that Šiaulių Bankas takes a leading position among other banks operating in Lithuania in provision of this type of credits.
This year compared to 2015 the agricultural sector has been more active in borrowing funds backed with the ACGF guarantees for investments and acquisition of particular assets. The Fund provides these guarantees to the banks and majority of credit unions. The amount of credits with guarantees issued by the Lithuanian financial institutions to the agricultural and rural business sector exceeded EUR 1 million over Q1, 2016 in total.
Over the first quarter of the current year Šiaulių Bankas issued EUR 2.87 million of credits to the farmers, rural businessmen and processors whereas EUR 2.14 million of them were supported by the Fund's guarantees. According to the ACGF this accounts for almost one third of the total Fund's guarantee amount. Šiaulių Bankas granted the biggest number of loans to farmers and rural entrepreneurs among the banks operating in Lithuania.
The farmers and rural entrepreneurs from Kėdainiai, Biržai and Ukmergė regions took the credits most actively. The credit funds have been mostly used for investments in modernization of crop production and dairy farms, to alternative agriculture activities, inland fisheries and other services rendered to the agricultural sector.