What is a credit guarantee?

Guarantee scheme of the Agricultural Credit Guarantee Fund is regulated by the Resolution No. 192  "Regarding Agricultural Credit Guarantee Fund" of 22 August 1997 of the Government of the Republic of Lithuania.

The Fund shall guarantee to banks or credit unions the repayment of up to 80 per cent of the outstanding credits.

Guarantee obligations to credit institutions are fulfilled after the credit institution terminates credit contract and realizes assets and (or) property rights have been pledged in favour of the credit institution and/or the claims under the bills of exchange issued to the credit institution and/or the unsold assets have been transferred to the credit institution under the procedure established by the laws, and other terms and conditions provided for in the Guarantee Issuance Agreement have been fulfilled. The Fund pays the difference between the unpaid credit amount or any portion thereof, and the income received by the credit institution from the exaction.