Šiaulių bankas will continue providing preferential credits to agricultural sector


Rural Credit Guarantee Fund (RCGF) satisfied Šiaulių bankas' application to receive target credits to agriculture and signed a new agreement with the Bank regarding the EUR 1.34 million (more than LTL 4.6 million) intended for modernization of agricultural holdings.

Šiaulių bankas is expecting to grant the received funds within a year. Farmers or legal entities engaged in agricultural activity, production of agricultural products and provision of services to agriculture are allowed to submit applications. Farmers will be able to use funds for financing of investment projects and expansion of activity: to acquire new agricultural equipment and technique, for construction and reconstruction or other activity.

Credits for modernization of agricultural holdings are provided according to the financial engineering measure “Modernisation of Agricultural Holdings - support by credits” foreseen in the Lithuanian Rural Development Programme for 2007-2013. Credits are provided only in Euro. Minimum credit sum is EUR 3000 and maximum credit sum is EUR 300 000. One agricultural entity can receive some credits, however, credits can not exceed maximum credit sum and can not be less than minimum credit sum. Preferential interest rate - from 3.85 per cent will be applied to credits extended to farmers. Credits at such conditions will be provided for the period not longer than seven years.

In order to receive credit farmers will have to submit a certificate to the Bank issued by the National Payment Agency under the Ministry of Agriculture on the fact that the applicant and its intended expenditure to be incurred comply with the requirements of the aforementioned measure.

From October 2009 till October 2010 Šiaulių bankas by cooperating with the Rural Credit Guarantee Fund extended credits to agricultural entities for more than a million Euro.