European Farm Loan

Purpose

The “European farm” loan is intended for individuals and legal entities – Agricultural producers, managing farms for breeding stock (cows) and buffalo, and complying with the following conditions:

  • The farm of the loan applicant for raising livestock and buffalo was registered by the procedures of Art.51 of the Law on the Veterinary Medical Activity
  • The farm of the loan applicant was registered in the Public Register of the Ministry of Agriculture and Foods
  • The borrowers, applying for financial assistance under the measure 121 “Modernization of farms” have a concluded contract with the State Agricultural Fund for granting financing assistance
  • The loan applicant has an individual milk quota for supplied and/or direct sales, allocated by the Minister of agriculture and foods
  • The loan applicant has a financial history and carries out business activity of at least one financial year
  • The loan applicant has a good credit reputation
  • The loan applicant does not have executable public liabilities

Loan purpose

Financing investment projects:

  • For making the farms for raising livestock and buffalo /buildings and equipment/ in compliance with the requirements of the European standards;
  • under the measure 121 “Modernization of the agricultural farms” of the Program for the Development of the Rural Regions (2007 – 2013);
  • other investments for buildings, machines and equipment, transport technology and infrastructure;
  • refinancing investment loans.

Parameters

  • Loan amount – from BGN 10 000 to BGN 500 000 /for approved projects under measure 121 the limitation in the maximum amount is not applied/
  • Repayment term – 84 months
  • Currency – BGN and EUR
  • Interest conditions – subject to agreement
  • Loan type – standard (with a repayment schedule)
  • Grace period – up to 6 months after the utilization term
  • Collateral
    All acceptable collaterals according to the Rules on the credit activity of CCB Plc:
    - At the discretion of the Bank, besides the provided tangible collateral, it is possible to require “Financial risk” insurance at “Armeec” insurance company JSC.
    - Upon the provision of a guarantee or surety under the loan in favour of the Bank by the State Agricultural Fund, CCB Plc accepts as collateral:
    - guarantee or surety from the State Agricultural Fund to the amount of 75 % of the loan principal
  • Way of repaying the principal – according to an individual repayment schedule
  • Interest payments – every month
  • Fees and commissions – according to the Tariff on the interest rates, fees and commissions of CCB Plc, with the exception of the interest for delay, which is the negotiated amount plus 10 points margin.

Collateral insurance

  • The established collateral are insured in favor of CCB Plc for all risks, accepted in the commercial practice. The insurance is at the expense of the borrower.
  • The “Financial risk” insurance policy at “Armeec” insurance company JSC is at the expense of the borrower.

Necessary documents

According o the Rules on the credit activity of the Bank, the following are additionally provided:

  • The registration card of the farmer, certified by Regional Directorate “Agriculture and forests” for a term till March 25 of the following year by the procedures of Ordinance № 3/29.01.1999 for the establishment and maintenance of a Register of the farmers/
  • Registration card of a cow milk producer, issued by Regional Directorate “Agriculture and Forests” by the procedures of Art. 6, para. 1 of Ordinance №6/07.06.2005 for monitoring the produced and realized quantities of cow milk and milk products, made of cow milk.
  • Certificate of the registration of a farm under Art. 51 of the Law on the Veterinary Medical Activity.
  • Statement /recapitulation/ of the Diary of the producer of cow milk for the previous year and as at the last date.
  • A protocol with a conclusion of the Commission of the Regional Veterinary Medical Office for ascertaining the compliance of the farm with the requirements to buildings and ascertained values of the indicators for raw cow milk – total number of micro organisms and total number of somatic cells.
  • Certificate for the allocation of an individual monthly quota for deliveries and/or direct sales.
  • Contract for the purchase of cow with corporate clients of the bank /in the cases, when the loan is provided to a supplier of those clients/.
  • Contract for the delivery of cow milk with a purchaser of cow milk, approved by the Ministry of Agriculture and Foods /www.mzh.government.bg; Milk Market; Register of the approved purchasers of cow milk/.
  • In the cases of financing an investment project under the measure 121 “Modernization of the farms” the following are provided:
    - Contract for granting financial aid with the State Agricultural Fund – Payment Agency;
    - Table of the allowed investments /an inseparable part of the project/;
    - Supply /service contracts according to elements of the allowed investments. In case the submitted contracts for delivery/ service are preliminary, the Bank also requires the final contracts.

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