Thousands reap benefits of Preferential Agro-Credit project

More than 300 million GEL in loans have been allocated to Georgian farmers to stimulate the country’s agriculture sector.

Since April 2013, 318 million GEL of Preferential Agro-Credit was issued to 14 100 beneficiaries, with the Government covering the part of interest costs.

Local agricultural companies have the opportunity use preferential agro-credit to increase the turnover of their capital.

Moreover, in the framework of the Preferential Agro-Credit project, 70 new businesses have been financed and 400 existing companies have been financed for expansion.

Georgia’s Agriculture Minister Shalva Pipia believed developing the country’s agriculture sector would help boost Georgia’s overall economy.

"Several projects including the Preferential Agro-Credit project have been created to help grow the agriculture sector,” Pipia said at a ceremony that summed up annual results of the Preferential Agro-Credit project.

He believed the implementation of commercial banks operating in Georgia’s banking sector had been one of the project’s main achievements.

Thirteen banks, two micro-finance organizations and two leasing companies have participated in the project.

Representatives of agricultural companies including winemaking, cattle-breeding, fishery, bee keeping and poultry farming have enjoyed loans under the credit system.

Agriculture Project Management Agency, a governmental body responsible for implementing the Preferential Agro-Credit project, fixed three components of the project but after consulting with banking and credit organisations and suppliers, four more components were added.

These components are: preferential loans for small, medium and big farmers; agro leasing; preferential loans for grape producers; citrus producers and exporters.