Development Working Capital for Farmers

The Development Working Capital for Farmers aims at financing farmers & farming businesses of any legal form for implementing their investment plans through up-front payment of a subsidy.

DESCRIPTION
Financing for farmers & farming businesses for implementing investment plans included in Measure 121 and Measure 123A
IDEAL FOR
Farmers (aged 18 – 60) / Farming sole proprietorships / Legal entities of any form
INTEREST RATE
Variable (PLR) minus a spread of 1%
DURATION
Up to 3 years, not exceeding 6 months after the programme’s anticipated expiry date
REPAYMENT
The debtor repays the loan in a single lump-sum principal instalment at loan maturity. Interest is paid every 1, 3 or 6 months
FINANCING
AMOUNT
Up to 90% of the approved subsidy

Features

FINANCING AMOUNT

It aims at financing farmers & farming businesses of any legal form through up-front payment of a subsidy for investment plans included in:

  • Measure 121 and
  • Measure 123A

of the Ministry of Rural Development & Food

Eligible Investments:

Under Measure 121

Small Improvement Plans: Modernising sheep- and goat-farming
Large Improvement Plans: Investments in primary-sector agricultural and live-stock production

Under Measure 123A
Investments in agricultural product processing and trading. Eligible investments include only the following sectors: meat, milk, eggs/poultry, honey, sericulture, cereals, oil seeds, wine, fruits and vegetables, flowers, animal feed, seeds & propagating material, aromatic & medicinal plants.
Investments aim at increasing the value of agricultural and live-stock produce, through adopting and developing innovations and technological equipment, and improving product quality, hygiene and safety.



IDEAL FOR

  • Farmers (natural persons) aged 18-60
  • Legal entities of any form (general partnership, limited partnership, limited liability partnership, SA, agricultural cooperatives, etc.)



INTEREST RATE

Variable (PLR) minus a spread of 1%
The debtor also pays the Law 128/75 levy (currently at 0.60% or 0.12%).
The annual rate of 0.12% applies to financing for natural persons or legal entities whose main activity is farming, stock-breeding or fishing on condition that the financing serves these activities.

Default interest rate 2.5% over the contractual PLR -1%. The PLR (Privileged Loan Rate) is disclosed by the Bank and is published in the Press.



DEVELOPMENT WORKING CAPITAL DURATION

Up to 3 years, not exceeding 6 months after the programme’s anticipated expiry date. Loan maturity may be extended with a written agreement between the parties, until investment inspection and certification has been completed and the assigned subsidy has been paid to the Bank.



LOAN AMOUNT

The loan may amount to up to 90% of the approved/assigned subsidy



REPAYMENT METHOD

The debtor repays the loan in a single lump-sum principal instalment at loan maturity (balloon payment). Interest is paid every 1, 3 or 6 months. The loan principal may be repaid by directly paying the assigned subsidy to the Bank either in instalments or in a lump sum, depending on the provisions of the decisions for inclusion and each programme’s regulations/directives. The amount of the subsidy will be credited to a blocked and pledged account, which the customer will have declared to the Greek Payment and Control Agency for Guidance and Guarantee Community Aid.



OTHER FEATURES


Disbursement

The loan is disbursed either in a lump-sum or in instalments depending on the terms of the decision for inclusion and each programme’s regulations/directives. Disbursements will either be credited to the account the equipment vendors hold with Piraeus Bank or the funds will be transferred to another Bank via a bank cheque / remittance.



Own Contribution

The debtor’s own contribution should be held with Piraeus Bank. The amount will be released and transferred to the vendors, pro rata with the investment implementation loan.



Early repayment

You may repay all or part of the loan with no penalty.



Grace Period

35 months for monthly interest calculation
33 months for quarterly interest calculation
30 months for semi-annual interest calculation
Only the interest is paid during the grace period.