Agricultural Loan Guarantee Fund for Zizhny Novgorod Oblast: Key design issues

The Agricultural Loan Guarantee Scheme (ALGS) has been designed for impleme ntation in the Nizhny Novgorod Oblast. Its aim is to assist agricultural en terprises and private farmers who lack sufficient collateral cover to obtai n credit from commercial banks. The Scheme provides for a sixty per cent gu arantee to accredited commercial banks through the public guarantee organis ation - Agricultural Loan Guarantee Fund - on a case by case basis. The ALG S offers loans for both working and fixed capital, thus assisting the trans ition of agricultural borrowers from informal, or semi-informal, finance to formal bank finance.