Gov’t approves Rural Development Agency co-financing of loan interest for farmers

The Rural Development Agency of Georgia’s Ministry of Agriculture will co-finance interest of loans taken out by farmers to grow single-year crops, the Government announced on Monday following the weekly meeting led by Prime Minister Irakli Garibashvili.

The co-financing will be made available at an annual rate of nine percent, for 12 months at longest, after beneficiaries demonstrate use of their loans for the expected purpose.

It sets the minimum amount of loan at ₾10,000 ($4,016) and the maximum amount at ₾100,000 ($40,166).

The initiative comes as a result of the Government’s approval of a subcomponent of the Preferential Agrocredit Programme, launched in 2013.

The Programme aims to improve primary agricultural production, processing, storage and sale by providing the legal entities and private individuals with long-term and preferential funds.