Financial instruments for rural development

In addition to the existing forms of grant funding, financial instruments (FI) are a new form of funding from the Rural Development Program 2014. - 2020. for financially sustainable projects, through loans/credits and guarantees. The purpose of the financial instruments is to primarly stimulate and support the growth and development of the agricultural, processing and forestry sectors, while contributing to the EAFRD with more favorable financing conditions (lower interest rates, lower fees, longer repayment periods and a longer grace period).

In addition to more favorable financing conditions, FI PRR provide financing for certain types of costs that were not eligible for funding through grants identified as necessary to continue and improve operations in the agro-processing and forestry sectors (e.g working capital financing up to a certain amount, buying animals, used equipment and annual plants).

Financial instruments PRR 2014. – 2020. consist of:

1.      Micro loans for rural development

2.      Small loans for rural development

3.      Individual guarantees for rural development

4.      Investment loans for rural development

Acceptable and unacceptable activities

The purpose of the instruments is to finance PRR 2014.-2020. measures, including measure 4 (sub-measure 4.1., 4.2.), measure 6 (sub-measure 6.4) and measure 8 (sub-measure 8.6).