Šiaulių bankas will grant preference credits to cultivators


In the Ministry of Agriculture Šiaulių bankas signed an agreement with the Credit fund managed by the Rural Credit Guarantee Fund regarding the target credit, granting preference credits to the agricultural sector.

According to the results of the tender arranged at the end of summer in 2009 Šiaulių bankas has offered some of the most favourable conditions giving the cultivators an opportunity to receive a credit with the interest lower than in the market.

The bank is planning to distribute the funds of the preference credit, i.e. EUR 2,4 million over 12 months starting from the day when the Credit Funds transfers them. The applications for the mentioned credits can be submitted by the cultivators or legal entities engaged in agricultural business or processing of agricultural products. Only the investment projects shall be financed. The credits will not be assigned to supplement the borrower’s working capital or to cover the existing liabilities with the banks. The preference credits will be granted to agricultural entities in euros only. The variable interest rates will be applied calculating them according to the value of 6 months EURIBOR and will not exceed 5.4 per cent over the entire period of credit.

“The agricultural sector is one more field where the bank will be able granting credits with the favourable interest and the bank’s margin. The collaboration between the bank and rural business people will allow intensifying the development of agriculture and facilitating the economic situation to both - single farmers and processing enterprises. We are waiting for the cultivates and hoping that the received credits will serve as a strong impulse realizing their investment plans while the bank will have a possibility to enrich its experience in lending to agricultural sector”, - said Deputy Chief Executive Officer of Šiaulių bankas Donatas Savickas.

The bank is going to grant the mentioned credits according to the two facilities of the Rural Development programs for 2007-2013: the credit amount will vary from EUR 3 thou (LTL 10,4 thou) to EUR 300 thou (LTL 1 m 36 thou) under the facility called “Modernization of Agricultural Premises” while the maximum credit amount established under the facility “Processing of Agricultural Products and Increase of Added Value” is EUR 4 million (LTL 13,8 million). The credits will be granted to foster the dairy cooperation as well - the amount of credit assigned per applicant cannot exceed EUR 10 million  (LTL 34,5 million) in this sector. The number of credits per borrower is not limited. Šiaulių bankas is to apply only one administration fee to the mentioned credits, which will not exceed 0.5 per cent of the credit amount.

The credit for project implementation will be grated for the period not longer than seven years (ten years for the dairy cooperation). In order to receive a credit the cultivates will have to submit a certificate issued by the National payment agency to the bank, which will state that the amount of the eligible credit and projected expenses meet the requirements defined by the facilities of the Rural Development programs. The answer regarding credit granting will be given to the applicant not later than within two months.

During the first stage - for 2009 -  the amount of LTL 100 million was assigned to the eight banks that won the tender, which will be relent to the cultivators and processing enterprises.

Šiaulių banks has won the tenders and currently is granted the state supported credits to other economy entities as well. The bank has successfully distributed the small state supported credits to small business, which were assigned for the first stage - the amount of granted credits comprises LTL 8,7 million. The process of lending to small and medium-sized business is further implemented under the facility “Granting of small credits - stage 2” as well as from the Open Credit Fund - the mentioned state supported small credits and credits from the OCF are granted collaborating with “Investment and Business Guarantees” UAB (INVEGA). Next week Šiaulių bankas will start granting the state supported credits to students.