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Three main products are used. The first one is a bank guarantee. At the moment, this option is used because of the possibility to receive up to 50% of the grant in advance under some schemes of the State Fund Agriculture. The second option is a bridge loan up to the amount of the grant - these are relatively short-term loans for 1 to 2 years, but they are not the majority of cases. Most loan transactions include not only the grant but also part of the co-financing, which is the third option. Upon receipt of the grant at the end of the project, the respective part is repaid, while the remaining amount is repaid as a long-term investment loan for a period from six to ten years, depending on the type of investment. Apart from that a VAT credit line is also granted usually, as VAT costs are not allowable costs under EU projects.
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