Financing of construction of irrigation system and greenhouses

Provincial Fund for Development of Agriculture has announced open competition for two new credit lines – financing of construction of irrigation system and construction of plastic greenhouses. The credit terms are better because the interest rates are lower and grace period is longer.

Maximal amount of loans for construction or modernization of irrigation system is €8,000, interest rate is 2.5% with six-month annuities. This credit line is divided into two types, the first one of up to €4,000 and the second one of €4,000 – €8,000. Grace period for tge first type is six months and the repayment period is 24 months, whereas grace period for the second type is 9 months and the repayment period is 30 months. During the grace period, the interest rate is not calculated. The projected means for financing of irrigation systems amount to €300,000.

As far as credit for plastic greenhouses is concerned, maximal amount of credit is €3,000, interest rate is 4.2%, grace period is nine months and the repayment period is 12 months. The same as with the credits for irrigation systems, the interest rate is not calculated during the grace period. According to the words of Jožefa Sabo, the credits for plastic greenhouses are approved for the first time and they represent pilot-project.

The money for these credits is provided thanks to the donation of the Government of Norway. The open competition lasts from September 10 to October 1.