Agriculture Risk-Sharing Loan instrument, Lithuania
This case study features a portfolio risk-sharing loan (PRSL) facility set up in 2021 under the Lithuanian Rural Development Programme (RDP) 2014-2020 to address economic disruptions in the agriculture sector caused by the COVID-19 outbreak. Rapid and targeted public support was needed to ensure that market operators retained sufficient liquidity and continued their economic activities. The financial instrument, managed by the Agricultural Credit Guarantee Fund, is aimed to enable farmers and agricultural small and medium-sized enterprises (SMEs), especially young farmers small rural businesses, to obtain loans on preferential terms for the maintenance or expansion of their activities, including new investments, during and after the pandemic. This case shows how EAFRD financial instruments can foster greater engagement by private institutions in the agricultural sector, which has historically been dominated by non-refundable forms of support.