Loans for the purchase of market surpluses

  • Loan purpose: purchase of market surpluses
  • Loan amount: based on recommendation of the Ministry of Agriculture, Water Management and Forestry
  • Interest rate:loan amount, interest rate and subsidy amount are defined in cooperation agreement that is renewed on an annual basis
  • Repayment: monthly /equal annuities or instalments/

Product description

The product is intended for companies in meat (processing) industry, based on recommendations of the Ministry of Agriculture. The loans are used to finance the purchase of livestock, primarily lambs, from domestic farmers. In this way, companies are relaxed from seasonal pressure in periods of purchase and start of product processing process.

The approved loan amount is made available to the borrower, with the repayment period of 8 months and grace period up to the specified date in January next year (compared to the year of approval).

The Bank introduced this product in 2005. The product is exclusive in the Montenegrin market and is being implemented in cooperation with the Ministry of Agriculture.

The purpose of the product is to reduce financial burden of companies operating in the field of meat industry, which is recognized as a strategic sector for the development of Montenegrin economy. In this way, effects of seasonal cash oscillations in companies are mitigated against highly favourable funding terms, primarily due to interest rates that are lower than the inflation rate in Montenegro.

CKB is the only bank in Montenegro that may fully support the current and development needs of both small and medium sized companies and large companies.

Product price

Product price, i.e. interest rate is determined on the basis of economic and financial analysis of the company, credit history, turnover on the account with CKB, collateral quality and value, etc.

How to apply for a loan?

To apply for a loan facility of this kind, it is necessary to contact the Ministry of Agriculture, Water Management and Forestry that will send proposals on potential loan beneficiaries and funding terms to the Bank. If the Ministry recommends your application for financing, it is necessary to submit documents as specified in the Loan Instructions and draw up appropriate application. The application should include basic information on the company operations, future plans, relations with larger buyers and suppliers, collateral that the company is willing to offer as security for the requested loan, etc. It is important for the application to bear the signature of the authorized person and corporate seal.

The application, along with the necessary documentation, should be submitted at the Bank reception desk. After that, the application is going to the Client Adviser, who prepares proposal for the Credit Committee that brings decisions on received applications. Upon the completion of the decision-making process, the Client Adviser will inform the client on whether the application has been approved and upon which terms and conditions.