Invega and LKU credit union group will provide preferential loans to young farmers

The group has signed an agreement with the national development institution Investment and Business Guarantees (Invega), Invega said on Wednesday.

“It is expected that this financial assistance will encourage the activities of young farmers in rural areas, especially those who are emerging who create greater added value, in order to accelerate the smooth generational change in the Lithuanian agricultural sector”, Vaida Stamburaitė, Invego’s chief project manager of financial instruments, is quoted in the report.

According to her, preferential loans of up to EUR 100,000 can be provided for a period of up to five years. 40% of the loan will be subject to a financial intermediary’s margin of no more than 5% and 6-month EURIBOR interest, while the remaining 60% will be subject to zero rates.

“Thanks to this Invego financial instrument, our unions will be able to offer easier conditions for young farmers to start their activities and receive financing for them.” We believe that this financial measure will be an impetus for strengthening the future of the Lithuanian agricultural sector”, said Mindaugas Vijūnas, head of the administration and chairman of the board of the Central Credit Union of Lithuania, which oversees the LKU group, in a statement.

The loan will be provided by 15 credit unions: Alytus, Anykščiai, Jonava, Jurbarkas, Grinkiškis, Kėdainiai Region Credit Union (KU), as well as KU “Fortūna”, KU “Germanto Lobis”, KU “Sūduva parama”, KU “Tikroji viltis”, Pakruojo KU, Panevėžys KU, Pasvalios KU, Pilies KU, Vytautas Didijos KU.

Persons between 18 and 40 years of age can take advantage of the “Young Farmers Establishment” facility.

Loans are intended to start the production of agricultural products, to process the products produced or grown on the agricultural holding, as well as to finance the acquisition of tangible and intangible, biological assets, land and working capital.

A total of almost 20 million TL is allocated for the support of young farmers, which is allocated from the 2021-2027 strategic plan for the development of agriculture and rural areas of Lithuania. Eur.

It will be possible to use this facility and borrow funds until the end of 2029 or until the funds provided for it run out.

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