OREANDA-NEWS. May 05, 2010. In April this year, Bank SNORAS will start lending the funds planned in the second stage of issuing specific-purpose, guaranteed loans of UAB “Zemes ukio paskolu garantijos fondo” (ZUPGF) to farmers, companies carrying out economic activity and to enterprises engaged in processing of agricultural products, reported the press-centre of Bank SNORAS.

The bank got the fifth part – LTL 10 million – of all the funds allocated for the second stage to entities involved in economic activity according to two support programmes: LTL 8 million was allocated to the programme „Zemes ukio valdu modernizavimas – parama paskolomis” (“Modernizing agricultural domains – support via loans”), LTL 2 million – “Zemes ukio produktu perdirbimas ir pridetines vertes didinimas – parama paskolomis” (“Processing of agricultural products and increasing the added value – support via loans”). The loans will be granted in Euros. In the first stage, the bank already lent LTL 6.4 million and it was one of the most active participants of ZUPGF support programme via loans.

“Working with farmers is not a novelty for us, and representatives of this economy branch appreciate us for making prompt decisions and flexibility because we also actively search for a way to the client and cater to as well as consider every client’s particularity and needs. We have managed to achieve experience in this specific business sphere by constantly participating in specialized exhibitions and while organizing our own seminars about crediting opportunities. Besides, the territorial customer service network broadly developed by the bank in the regions is attractive to the farmers and agricultural companies developing their business further away from the regional centres,” says Zorzas Sarafanovicius, the deputy chairman of AB Bank SNORAS Board, the director of Retail Business Division.

Farmers, who are engaged in agricultural business, the companies, cooperative societies, which will be able to invest these funds in purchasing agricultural equipment or machinery, to acquire agricultural transport or crop, can lay claim to the loans according to the programme “Modernizing agricultural domains – support via loans”.

Loans according to the programme “Processing of agricultural products and increasing the added value – support via loans” are designated to the companies which process agricultural products. These are companies processing milk, meat, grain, etc.

The interest applied to these specific-purpose loans comprises 3.25 per cent and up, but during the entire loan provision period it will not exceed 5.25 per cent. Loans will be issued for a period of up to 7 years. Loans to milk co-operation can be issued for a longer period – up to 10 years.

In the first stage of the specific-purpose loans, most loans were granted for purchasing agricultural machinery and equipment.