Guarantee issuing procedure


Guarantee issuing procedure

1. Economic entity applies to the credit institution - bank or credit union – asking for credit and negotiates the terms.

2. Credit institution applies to Agricultural Credit Guarantee Fund asking for guarantee. The credit institution shall submit guarantee application and additional documents, indicated in the application.

3. The Board of Agricultural Credit Guarantee Fund makes a decision concerning guarantee issuing and reports it to both credit institution and credit beneficiary. Credit beneficiary pays guarantee fee and signs credit agreement.

4. Agricultural Credit Guarantee Fund issues credit guarantee to credit institution.

5. Credit institution grants the credit to credit beneficiary.