Guarantees for activities alternative to agriculture

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Guarantees for activities alternative to agriculture

Alternative to agriculture activities

Economic entities engaged into activities alternative to agriculture are small and medium businesses located in rural areas or small towns with no more than 6000 inhabitants and their agricultural holding are registered in the Agriculture and Rural Business Register of the Republic of Lithuania.

  • Small and medium agricultural produce processing companies (meat, milk, grain and other produce processing);
  • Service provision in rural areas (e.g. agro services, hairdresser’s, apparel shops etc.);
  • Rural tourism;
  • Forestry and wood processing;
  • Traditional crafts;
  • Other manufacturing companies in rural areas.

Guarantee issuing conditions

Agricultural Credit Guarantee Fund guarantees to banks or credit unions the repayment of up to 80 per cent of the outstanding credits. 

Guarantees shall be provided only to finance financially sound and commercially feasible projects and to the economic entities that are not considered to be undertakings in difficulty. The Fund issues guarantees in compliance with Regulations on the Activities of the Private Limited Liability Company Agricultural Credit Guarantee Fund.  

Credit guarantees are issued for:

  • Credits intended for investments;
  • Credits or credit lines intended for the acquisition of current assets and/or the payment for the services according the List of Services for the Agricultural Sector.
  Guarantees for credits intended for investments Guarantees for credits or credit lines intended for the acquisition of current assets
Credit purpose For investments

For the acquisition of currents assets and/or the payment for the services according to the List of Services for the Agricultural Sector

Credit maturity Not limited Not limited
Maximum credit amount 1.16 million Eur 1.16 million Eur
Total amount of guarantees for economic entities 1.16 million Eur 1.16 million Eur
Guarantee fee**
(calculation based on the amount of guarantee)

• From 5 % to 6.8 % for credits to finance investment projects implemented without the EU financial support (applies to 80 per cent compensation)

• From 1.5 % to 3 % for credits to finance investment projects implemented with the EU financial support;*

• From 1.5 % to 3 for credits to purchase land.

• For credits:

- up to 1 year - from 0.5 % to 1.8 %,
- more than 1 year plus 0.3 % for every next year.

 • For credit line:

- up to 1 year - from 0.6 % to 1.6 %,

- more than 1 year plus 0.3 % for every next year.

Fee for extension of validity period of guarantee 

0.3 % on the guaranteed amount of the extended credit multiplied by the number of years, for which the final deadline for the repayment of the outstanding credit has been extended.

0.3 % on the guaranteed amount of the extended credit multiplied by the number of years, for which the final deadline for the repayment of the outstanding credit has been extended.

* - economic entities, who have changed the original terms of guarantee and having the decision of the Board of ACGF, allowing the received EU funds to use for company activities or not to make the repayment of the guaranteed credit, pay one time 7 % guarantee fee from the amount of unused EU funds for credit repayment.

** - the size of guarantee fee depends on project risk, credit purpose, credit maturity and amount, loyalty of the credit beneficiary. The established guarantee fee is reduced for economic entities, which have insured agricultural plants, for economic entities engaged in livestock breeding and for financially sound credit beneficiaries.