Activities

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Activities

Guarantees issuing

Agricultural Credit Guarantee Fund issues guarantees to credit institutions (banks and credit unions) and financial lease (leasing) companies.

The fulfilment of the guarantee liabilities is ensured by the State. Should the Company fails to fulfil obligations specified in guarantee agreements or should it fulfils not all obligations, in accordance with the Law on State Debt of the Republic of Lithuania, the Government of the Republic of Lithuania fulfils such outstanding obligations under the agreements signed by the Company with the credit institutions and finance lease (leasing) companies.

Credit guarantees

Agricultural Credit Guarantee Fund guarantees to credit institutions the repayment of up to 80% of the outstanding credit or credit line repayment.

Credit guarantees are issued to credit institutions for credits granted to:

  • Farmers and agricultural entities;
  • Small and medium businesses, located in rural areas (economic entities engaged into activities alternative to agriculture);
  • Companies purchasind and/or processing and/or selling agricultural products;
  • Fisheries entities;
  • State Enterprise Lithuanian Agricultural and Food Product Market Regulation Agency;
  • Rural communities and local activity groups implementing investment projects financed from the EU Funds providing support;
  • Research ang higher education institutions and vocational trainings institutions, having experimental, demonstration, training or pilot farms and implementing investment projects financed from the EU Funds providing support.

Leasing guarantees

Agricultural Credit Guarantee Fund guarantees financial lease (leasing) companies the payment of up to 60% of the unpaid portion of the price of the new (unused) production equipment and/or new (unused) machinery, manufactured no later than 2 years before the conclusion of a finacial lease (leasing) contract, established in the financial lease (leasing) agreement.

Finance lease (leasing) guarantees are issued to finance lease (leasing) companies for finance lease (leasing) granted to:

  • Agricultural entities;
  • Alternative to agriculture economic entities;
  • Agricultural products processing companies;
  • Fisheries entities.

Administration of State aid

Agricultural Credit Guarantee Fund administers compensation of a part of the guarantee payment made to the Fund for providing guarantees and part of the interest paid to credit institutions.

Credit Fund

With the initiative of the Ministry of Agriculture of the Republic of Lithuania the Credit Fund, as a measure of financial engineering, with the aim to assimilate the funds of the Rural Development Programme 2007-2013 more efficiently, expand the dissemination of the support, improve the development of economic entities, was established. By the Order No. 3D-525 of 17th July 2009, Minister of Agriculture of the Republic of Lithuania has assigned Agricultural Credit Guarantee Fund to carry out the administrative functions of the Credit Fund.

Indemnity Fund of Licensed Warehouses

According to Resolution No. 1523 of October 1st, 2002 of the Government of the Republic of Lithuania, Agricultural Credit Guarantee Fund is charged with administration of the Indemnity Fund of Licensed Warehouses. By implementing licensed warehouses and storage documentation system, grain producers and processing companies that have pledged stored grains to credit institutions, will be able to get medium-term loans to cover the operational expenses. The Fund is entitled:

  • to accumulate reserves for ensuring commercial banks’ and other credit institutions rights of claim and compensating any stored goods owners’ loss that is not covered by warehouse or insurance;
  • to compensate loss of warehouse receipt holders.