Komerční banka's clients can draw on more advantageous loans for buying farmland

Press release

3/18/2010
8:00 AM

Thanks to a new agreement between Komerční banka and Podpůrný a garanční rolnický a lesnický fond (PGRLF), Komerční banka's clients can have the advantage of drawing on more advantageous loans for buying farmland. The loans are supported by a subsidy to interest, which can be up to 5 percentage points of the overall rate of interest on the loan drawn.

Komerční banka and PGRLF entered into at 8 March an agreement on co-operation under the Podpora nákupu půdy [Support for Land Purchase] scheme. Thanks to this scheme, Komerční banka's clients operating in primary agricultural production can obtain, on favourable terms, funds to buy non-state farmland. PGRLF's support provided under this scheme consists of a subsidy to the rate of interest on the loan, which is paid to the client.

At Komerční banka, farmers can draw on an investment loan with any maturity to buy farmland. PGRLF will then provide the support to the clients by 31 December 2012. The type of the interest rate is not limited – it can be a floating rate, a rate fixed until maturity, or fixed for a certain period of time depending on the client's requirements. The minimum amount of the loan is CZK 100,000 and the maximum amount is CZK 10 million. Loans need not necessarily be secured by the land being bought.

"Making accessible all the advantages that Podpůrný a garanční rolnický a lesnický fond can offer KB's clients, is one of our priorities. This is also the reason why Komerční banka is one of the very few banks on the Czech market which participate in all support schemes prepared by PGRLF," said Radko Belada, Head of Retail Marketing.

Komerční banka has long been one of PGRLF's most important partners in terms of the number and volume of loans provided with PGRLF's support. Since 1994, when KB and PGRLF entered into their first agreement on co-operation, KB has provided almost 10,000 loans with PGRLF's support, and the volume of these loans totals more than CZK 45 billion.

Komerční banka currently also cooperates with PGRLF in the Provoz [Operation] and Zpracovatel – provoz [Processor – Operation] schemes, which support the operating financing of primary producers and processors of farm produce in the form of subsidies and guarantees for operating loans. KB's clients can also use support under the Zemědělec [Farmer] scheme, which facilitates, by way of subsidising interest, access to loans for the purchase of farm machines and modern technologies.

Komerční banka is one of the best run universal banks in Central Europe. It provides comprehensive services to clients in the areas of retail, corporate, and investment banking. The Komerční banka Group's 8,815 employees serve more than 2.7 million clients, who can use an extensive network of 398 points of sale throughout the country. Komerční banka currently operates 685 ATMs and more than 984,000 of its clients use one of direct banking channels.

Komerční banka is part of the Société Générale Group, one of the largest banking groups in the euro zone (in terms of market capitalisation), whose 163,000 employees serve more than 30 million individual clients worldwide.