Guarantees for processing companies

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Guarantees for processing companies

Agricultural Credit Guarantee Fund issues guarantees for credits to agricultural products processing companies, which operates in the city:

  • meat production companies;
  • dairy products companies;
  • grain processing companies;
  • fruits and vegetables processing companies;
  • other agricultural products processing comapnies.

Guarantee issuing conditions

Agricultural Credit Guarantee Fund guarantees to credit institutions the repayment of up to 80 per cent of the outstanding credit amount.

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 and credit lines intended for the acquisition of current assets which will be used in the agricultural products processing process (agricultural products, materials and other assets);
  • Credits and credit lines intended for the acquisition of current assets, that will be sold to the other agricultural entities of the Republic of Lithuania.
  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 current assets, to purchase agricultural products

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. 

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

• 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 beneficiary. The established guarantee fee is reduced for financially sound credit beneficiaries.