The purpose of the Law No. 3205-2 “On the Fund for Partial Credit Guarantee in Agriculture” is to support small and medium-sized businesses, including farms.
The Fund for Partial Credit Guarantee in Agriculture as a specialized non-banking financial institution created by the Government, the Fund provides credit support and guarantees the repayment of loans to small and medium-sized farms and agricultural enterprises cultivating up to 500 hectares of land.
The Law defines the key issues of the Fund's activity, in particular:
- the procedure for forming the authorized capital of the Fund, the conditions for its increase and decrease;
- the procedure for convening, competence and the procedure for making decisions by the governing bodies of the Fund;
- the procedure for determining the criteria for business entities that have the right to a partial guarantee of fulfillment of obligations under loan agreements.