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Banca Intesa starts approving subsidized agriculture loans

Banca Intesa has started approving loans with subsidized interest rates for the agriculture sector, which are implemented in cooperation with the Ministry of Agriculture and Environmental Protection as part of the program of subsidized lending for agricultural production in 2015.

Short-term and long-term dinar loans are available to all holders of registered farms, agricultural cooperatives, and legal persons registered as agricultural farms, regardless of whether they are clients of Banca Intesa or not, and may be used for investments in livestock breeding, farming, fruit and vegetable production.

“Active participation in the implementation of the state program of subsidized lending for agriculture is an important aspect of the overall support that Banca Intesa provides to customers in this segment. This is reflected in the fact that we approved 1,200 loans with subsidized interest rate in 2014, totalling to 920 million dinars, or about one in five subsidized loans granted in the market. Our intention, in line with our strategy to increase investment in agriculture, is to be among the most active banks in the implementation of this year’sprogram as well, helping farmers improve production and increase competitiveness under favourable conditions,” said Darko Popović, member of the Executive Board and Head of Retail Division at Banca Intesa.

Subsidized loans are granted for investments in working capital and fixed assets, that is purchase of raw materials, livestock, agricultural machinery and equipment. Loans are approved in the maximum amount of up to 5 million dinars to holders of registered farms, and up to 15 million dinars to agricultural cooperatives, with a repayment period of up to three years and the possibility of using a grace period of up to one year. The interest rate is fixed at 4 percent per annum for livestock purchase loans and at 6 percent for investments in other branches of agriculture.