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Ūkio bankas applying lower interest to farmers
2010 02 01
Ūkio bankas, improving lending conditions in Lithuania, extends soft loans to farmers.
Ūkio bankas actively considers applications on loan extension to the country’s residents pursuing agricultural activities.
Farmer applications for loans will be accepted until October 2010; however, considering a great interest of farmers, Ūkio bankas may distribute the funds intended for these loans earlier.
“The funds are allocated for investments but not for the turnover. Therefore, this offer is really interesting to persons engaged in agriculture – the loan amount is quite big and can help developing serious activities. Interest applicable to farmers is below a market rate of interest while loan repayment terms allow farmers developed their activities and earn profit. Thus, this loan scheme is a serious support to farmers in developing the existing and starting up new business,” Mindaugas Pašvenskas, head of Ūkio bankas Credit Division, said.
In his words, the business of agriculture is the only branch of the economy that even during this period of economic recession is considered as the promising one and therefore banks quite willingly finance it.
At Ūkio bankas, farmers or companies can borrow from EUR 3,000 to 10,000,000 or the equivalent amount in litas. The maximal maturity of the loan is 7 years, for milk cooperation – up to 10 years.
The interest offered to farmers on loans in euro accounts for 4 to 6 percent, the interest on loans in litas – 5-10 percent.
As informed by M. Pašvenskas, Ūkio bankas organises seminars to the farmers being potential borrowers. At these seminars agricultural business representatives will receive information on the procedure of lending, the applicable requirements and the mandatory documents. Seminars will be held in Šiauliai (4 February), Ukmergė (23 February), Telšiai and Kretinga (25 February). Apart from bankers, these seminars will be attended by representatives from the National Paying Agency and the Agricultural Credit and Guarantee Fund.
Credits will be allocated for investment projects under two measures of the Lithuanian Rural Development Programme for 2007-2013, “Investments in Agricultural Holdings” and “Processing of Agricultural Products and Increasing of Added Value”. Ūkio bankas will grant loans in cooperation with the Loan Fund set up by the Lithuanian Ministry of Agriculture.
Funds will lent for the modernisation of agricultural holdings, i. e. acquisition of new state-of-the-art equipment and machinery and construction or reconstruction of production buildings, i. e. the new objects that will facilitate farmers’ work and increase its efficiency.