The Ministry of Agriculture has changed the rules for subsidising under loan guarantee and insurance schemes. The document clarifies the conditions for issuing guarantees and subsidising loans in the agricultural sector (agribusiness).
WHO CAN ISSUE LOANS
The updated rules establish a list of lenders participating in the subsidy system. These include second-tier banks, subsidiary organisations of national holdings, as well as microfinance organisations (MFOs), credit unions and social-entrepreneurial corporations (SECs).
HOW THE GUARANTEE MECHANISM WORKS
The document establishes the use of portfolio guaranteeing. In this case, the guarantor sets a limit for the lender, within which the lender makes decisions on issuing loans.
The timeframe for issuing a guarantee obligation after submitting documents is up to two working days. The guarantee fee is subsidised by the state at a rate of up to 9.99% of the amount, while the borrower pays 0.01%.
CONDITIONS FOR SEASONAL WORK
Separate requirements apply to loans for spring field work and harvesting. The maximum guarantee amount is up to 85% of the principal debt. There is also a requirement to insure crop areas if subsidies for insurance premiums are available.
HOW APPLICATIONS ARE SUBMITTED
Applications are submitted electronically via the e-government portal using the State Information System for Subsidising (SISS). The review of applications takes up to two working days.