Government of Georgia to cover interests of loans on one-year crops

Tbilisi: The Government of Georgia will be covering the interest of the loan given to bring one-year crops. According to the decision taken at the session of the Government of Georgia, a subcomponent has been activated within the framework of the project “Compensitive Agrocredit”, by which the Rural Development Agency will be co-financing the interest of financing the ongoing costs of producing crops for one-year crops.

The operation of a subcomponent will help increase the self-sufficiency rate in agricultural crops and promote the primary production of grains.

The Rural Development Agency will co-finance the interest rate of not more than 12 months within the subcomponent at the amount of 9% per year for not more than 14 months after the issuance of the loan, after the beneficiary confirms the targeted spending of the loan. The loan amount given to one beneficiary was determined from 10,000 Gel to 100,000 Gel.

The purpose of the loan includes financing one-year crops and one-year operational year costs of Yonji, in particular, sowing and liquid materials, pesticides, organic and mineral fertilizers, plant protection biological means, labour resources and agricultural work, rental of agricultural machinery and fuel of agricultural machinery used for agricultural work I to fund the ongoing costs of materials.

The land where the loan money is planned to be invested must be owned by the borrower in accordance with Georgian law (especially, there should be an agreement between the owners on the benefit of the property during the term of the loan, and in case of benefits, its validity period should not be less than the term of the borrower).

Georgian citizens natural persons, individual entrepreneurs registered in accordance with Georgian legislation and legal entities registered in accordance with the legislation of Georgia (except state/municipal enterprises).

Agrocredit issuance will begin after the clearance of the loss; financial institutions will be able to issue loans until October 31, 2023. “For financing one-year cultures,” subcomponent has been added to the project since 2020.