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Thursday, March 28, 2024

Georgian farmers to get low-interest loans for annual crop production

Georgian Agriculture Minister Otar Shamugia stated on Monday, March 21, that the Georgian farmers will be able to obtain low-interest loans for the production of annual crops following the latest revisions to the preferential agro-credit state programme.

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Georgian Agriculture Minister Otar Shamugia stated on Monday, March 21, that the Georgian farmers will be able to obtain low-interest loans for the production of annual crops following the latest revisions to the preferential agro-credit state programme.

The Georgian Government will subsidise 9% of the loans, with farmers to be able to finance the cash resources needed for their working capital such as seed materials, equipment rental and fuel.

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Based on the Government’s decision, the Agriculture Minister said the interest rate for the loans would not exceed 18%.

The Minister stated, ” Under this project, we will subsidise at least half of the interest rate. We believe that this will considerably contribute to our farmers’ access to low-cost monetary resources for the production of annual crops in the nation.”

Moreover, Shamugia also stated that the state would co-finance 80% of the costs of setting up vegetable storage farms for agricultural cooperatives.

He further explained, ” Farmers can join together to form a cooperative, and if they meet the requirements outlined in a specific government decree, they will get co-financing from the state for vegetable storage farms in the form of a grant of 80 per cent of the total cost.”

According to the Minister, a total of 4.5 billion GEL ($1.3 billion/€1.2 billion) has been invested in Georgia’s agricultural growth in recent years.

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