Private Agricultural Development Project

closed

Closed

The main objectives of the Private Agriculture Development Project are to assist the government with the development of a viable, private agriculture sector and to foster economic growth in rural areas by providing a combination of financial and technical assistance. The project has two main components: 1) a rural credit component (RCC), which includes a US $30 million line of credit and an institutional development program for the Agricultural Bank of Lithuania (ABL) and local banks; and 2) an institutional and human resources development component (IHDC), which consists of technical assistance for land reform, extension services, marketing, business skill training, and rural employment generation and targeted poverty alleviation. The RCC aims to: 1) strengthen and restructure rural credit delivery systems; 2) develop commercial lending channels for rural credit; 3) restructure the ABL; 4) finance upgrading of technology and production facilities; 5) foster development of private farms and promote emergence of private small and medium enterprises in rural areas; and 6) provide seed money for opportunities for income and employment generation in rural areas. Finally, the objectives of the IHDC are to: 1) increase productivity, competitiveness, and marketing prospects for Lithuanian products; 2) expedite land reform and develop a mortgage system for increased access to credit; 3) increase the availability of alternative employment opportunities through retraining and diversification of farm businesses; 4) reduce rural poverty; 5) improve human skills and local institutional capacity; and 6) improve business management skills of farmers and entrepreneurs in identifying, evaluating, and pursuing business development opportunities.

Financial Sector

World Bank Group

Project

Raw Materials, Commercial, Government