Agriculture Development Support Programme - IPARD


 1. Programme Objective 

IDF MN JSC has defined stimulating financing conditions for a particular target group of agricultural producers and companies participating in grant scheme IPARD like Programme of the Ministry of Agriculture and Rural Development of Montenegro. 

IPARD Project is implemented in cooperation with the Ministry of Agriculture and Rural Development of Montenegro for financing projects in the field of agriculture and food processing in Montenegro. The goal of the project is to support investments in food processing, introduction and implementation of rural development measures, improving competitiveness on the agricultural products market, as well as introducing and strengthening European food production standards.

2.      Loan Purpose 

Loans are designed for supporting to agricultural households and companies in accordance with the Call of the Ministry of Agriculture and Rural Development of Montenegro.

3.      Loan Beneficiaries


The loan beneficiaries under this credit line are agricultural producers, micro, small and medium enterprises (which perform agricultural activities within their activities) and which received from the Ministry of Agriculture and Rural Development a decision confirming that they are IPARD project beneficiaries. 

  • End beneficiaries of these loan arrangements may be entities that have obtained a confirmation from the Tax Administration on their tax arrears). 

Right to a loan is not a guaranteed right and IDF MN JSC shall enact a decision on each Loan Application.

4.      Lending Method 

IDF MN JSC implements this Programme through direct lending to the loan beneficiaries. 

Loan Applications that are not supported with mandatory defined documents shall not be taken into consideration.

5.      Loan Conditions 

Loans approved under this credit line shall be provided from the Company’s own credit potential. 

Lending conditions: 

  • The maximum loan amounts up to maximum investment level in accordance with IPARD rules;
  • Interest rate of 3,00% annually with the proportional interest calculation method;
  • Maximum term of 12 years (including grace period);
  • Grace period up to 4 years. 

Special lending conditions:

For subjects implementing projects in northern municipalities of Montenegro and in municipalities that are below the average value of the development index in Montenegro, the interest rate amounts to 2,50 % on an annual level with proportional interest calculation method. 

In case of a direct loan arrangement that is fully or partially supported by a bank guarantee, cash collateral or State (municipality) guarantee, such loan arrangement or its proportional part shall not be considered as exposure of the end beneficiary. 

Upon meeting the requirements and conducting the procedure in accordance with IPARD rules, loan beneficiaries shall be entitled to a refund in the set amount, which is deduced from the loan principal.  Activities related to rights to a refund are carried out by the Ministry of Agriculture and Rural Development of Montenegro.

6.      Fees 

Fee amount 

  • 0,30% on the approved amount for subjects implementing projects in northern municipalities of Montenegro and in municipalities below the average value of the development index in Montenegro;
  • 0,40% on the amount approved for projects implemented in other municipalities.

7.      Utilization of Loan


Loan Validity: in accordance with the signed agreement between the beneficiary and the Ministry of Agriculture and Rural Development of Montenegro.

Final utilization period shall be established on the case-by-case basis for each individual loan arrangement dependent on the real needs and the dynamics of investing.

Loan beneficiaries shall be obliged to a dedicated usage of loan funds in accordance with this programme and agreement signed between IDF MN JSC and loan beneficiary.

IDF MN JSC will not carry out field control over the purposeful use of loans but will accept the views of the Ministry of Agriculture and Rural Development of Montenegro.

IDF MN JSC shall execute approved direct loans whose purpose is investing in agricultural holdings, by transferring funds to:

  • The supplier’s account or service/works provider or
  • Loan beneficiary account in tranches - in phases. 

Transfer of funds directly to the Loan Beneficiary’s account in tranches – in phases, means that, as a general rule, the subsequent transfer of funds will not take place until the Beneficiary justifies dedicated usage of prior realized funds under the approved loan (fund per already transferred tranches).

8.      Means of Security 

As means of loan security IDF MN JSC shall accept bills of exchange, mortgages on real estate, bank guarantees, local government units' guarantees, guarantees of the Government of Montenegro, guarantees of credit rating legal entities, stocks of receivables administrative bans on income, at least one solvent guarantor (depending on the amount of the loan and the guarantor's income), premiums, subsidies, grants and direct payments ensured by the Ministry of Agriculture and Rural Development, as well as other typical means of security in banking operations and in accordance with acts of IDF MNE JSC and the decisions of the relevant authorities of IDF MNE JSC. 

All costs with regard to providing instruments of security as well as of the execution of insurance-related tasks, deletion and retrieval of realized instruments shall be carried by the loan beneficiary.

9.      Required Documents 

Documentation base - defined by the IPARD project.

Executive office of the IDF MN JSC retains the right to request additional documents.

10.  Other Provisions 

Additional rules applicable to this Loan Programme, which are not mentioned in this document, are defined in special acts passed by competent bodies of IDF MN JSC.

11.  Credit Line Validity 

This Credit Line shall be valid until 31 December 2019, until it’s altered or terminated. 

President of the Board of Directors  

           PhD Zoran Vukčević