New facility – guarantees for leasing companies 04-01-2012
On 1st January 2012, the new amendment of Rural Credit Guarantee Fund came into force, according to which the guarantee fund will start a new facility – the guarantees, not only for the banks and the credit unions, but also for the leasing companies.
In order to promote the agricultural and rural development and the diversity of funding sources, the Ministry of Agriculture, following the order No.3D-950 of 28 December 2011 has changed and added the Regulation of Rural Credit Guarantee Fund activity, and gave the right to provide the guarantees for the leasing companies for the acquisitions of their customers.
„Last year there was a strong interest of the leasing companies in the state of guarantees provided by the Fund“ – says the director of Rural Credit Guarantee Fund Danguole Cukauskiene. „Leasing companies are active in the funding the rural sector enterprices, farmers, that‘s why the funding opportunity was given to the leasing companies, as well as to the credit institutions, to get the Guarantee Fund‘s guarantees.
The main conditions of the guarantees issuing for the leasing companies:
The purpose of leasing – new and unused agricultural agricultural and forestry machinery, industrial equipments and facilities
- Guarantee percentage – up to 30 percent the outstanding price for the new equipment set in the leasing agreement
- The maximum leasing amount – 1 mill. LTL
- Leasing term – not less than 3 years
- Clients – farmer‘s farms and the other agricultural companies, cooperatives and agricultural processing companies
Guarantees for leasing companies for the acquired equipments of their customers will be provided when the leasing companies and the Guarantee Fund will sign the Cooperation Agreements for the guarantee issuing. The procedures of guarantees issuing remains the same as for the credit institutions.