BGZ to offer farmers attractive SAPARD bridging loans

The European Union intends to earmark close to euro 500 million from the SAPARD fund for Poland. The money will be mainly spent on modernizing rural areas, including upgrading food processing plants, individual farms and infrastructure. Farmers, companies and local governments may apply for a financial grant from the fund. However, the beneficiary has to make the investment first and then later claims an EU subsidy, which will not exceed 50% of the costs. Bank Gospodarki Zywnosciowej (BGZ) has created a new offer for those who may wish to take advantage of the subsidy, but who lack sufficient financial resources to make the initial investment. "We are offering attractive interest rates and very low commission," said BGZ's president Michal Machlejd. "We envisage a 10% interest rate for farmers and 10.5% for companies. Rates for local governments will be negotiated in dividually with them. So far only BGZ's best clients have been granted a loan on such terms," he stressed. (Gazeta Wyborcza, July 13-14, p. 23) A.Z.