OREANDA-NEWS. May 04, 2010. After signing a cooperation agreement with UAB "Litagros prekyba", DnB NORD Bankas starts granting interest free loans to farmers purchasing the company's products. The interest and other amounts payable will be paid to the bank by "Litagros prekyba". The credits will be available to farmers and agricultural companies recommended to the bank by "Litagros prekyba", the company that has an extensive operating experience in the agricultural sector, reported the press-centre of DnB NORD Bankas.

"This is an entirely new project which offers a great advantage to farmers as they can receive interest-free financing with no property collateral since the credit is backed by "Zemes ukio paskolu garantiju fondas" (Agricultural Loans Guarantee Fund) guarantees. Last year we pioneered the market offering express credits to farmers for working capital and today we have no doubts that the joint offer of DnB NORD Bankas and "Litagros prekyba" will be appreciated by farmers complementing our financial service package designed to the needs of this sector," - said Evaldas Ruzgys, Director of DnB NORD Bankas' Product Development Department.

According to E. Ruzgys, "Litagros prekyba" sells products necessary to grow agricultural products and farmers often need working capital to purchase them. Therefore, the bank will grant financing to purchase fertilisers, seeds and pesticides from "Litagros prekyba" when the deal tops LTL 50 000.

Credits will be issued with up to one year's maturity to be repaid in a lump sum upon expiry of the agreement. "Litagros prekyba" shall pay all amounts due to the bank by the client and shall also cover the up-front fees under the cooperation agreement  of DnB NORD Bankas and "Litagros prekyba".

Farmers and agricultural companies are offered various credit ans savings products products of DnB NORD Bankas designed to corporate clients. Before financing is provided, the bank evaluates each client's financial situation and business specifics and guides them from situations to avoid the loan tuning into bad debt burden to customer.

DnB NORD Bankas has always paid much attention to financing agricultural sector. According to the data provided by UAB "Zemes ukio paskolu garantiju fondas", within the first quarter of 2010 DnB NORD Bankas issued the highest number of credits with guarantees to farmers and rural businessmen (28 percent of overall credits issued with guarantee).

AB DnB NORD Bankas is a universal commercial bank that provides comprehensive range of banking services to individual and corporate customers. AB DnB NORD Bankas is a member of Denmark-based DnB NORD banking group which was established by the Norway’s largest bank DnB NOR ASA and North Germany’s largest bank Norddeutsche Landesbank Girozentrale (NORD/LB).