OREANDA-NEWS. August 18, 2008. Within the first half of the current year AB PAREX Bankas stood among the banks that extended the largest number of credits to farmers with Rural Credit Guarantee Fund guarantees. AB PAREX Bankas takes up 9 per cent market share in the area of credits with guarantees extended to Lithuanian farmers, reported the press-centre of PAREX Bankas.
 
During the last seven months of the current year Rural Credit Guarantee Fund granted LTL 88.2 million guarantees to credit institutions accounting for LTL 148.8 million credits granted by them to farmers, rural entrepreneurs and processors of agricultural production. Value of guarantees granted to credit institutions has grown by 10 per cent compared to the same period last year.

According to the Ministry of Agriculture, farmers are the most active users of credits with guarantees. They amount to nearly 85 per cent of all borrowers. The users of guaranteed credits are small and medium businesses in rural areas, agricultural entities, cooperatives and other rural entrepreneurs.

The guaranteed credits’ users usually are involved in crop production and stock farming. Developing their farms, they purchase agricultural machinery, agricultural land and use their credits to build new and renovate present facilities. Borrowers generating alternative activities in countryside purchase various machinery and equipment. Borrowed funds were for the most part used for implementation of investment projects, almost 10 per cent of all credits were allocated to purchasing current assets.

Guaranteed credits become increasingly solid support for farmers in Lithuania, who are willing to borrow and do not have enough collateral to receive bank credits.