Gov’t approves Rural Development Agency co-financing of loan interest for farmers
The Rural Development Agency will co-finance interest of loans taken out by farmers to grow single-year crops, announced on Monday following the weekly meeting led by PM Garibashvili. Photo: PM's press office
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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.
Georgian Prime Minister Irakli Garibashvili and Agriculture Minister Otar Shamugia on Thursday reviewed projects in the sector for this year, from the budget of the Preferential Agrocredit Programme to financing for irrigation infrastructure and promotion of the country’s produce.
The Ministry of Environment Protection and Agriculture of Georgia is launching a $150 million project with the Government and the World Bank to renovate and modernise amelioration infrastructure in select locations in the country.
The Ministry of Agriculture has extended support programmes for business and agriculture, and offers grapes, hazelnuts and tea producers an effective support package, said Georgian Prime Minister Giorgi Gakharia earlier today.
Since April 2013, 318 million GEL of Preferential Agro-Credit was issued to 14 100 beneficiaries, with the Government covering the interest costs.
Georgian Agriculture Minister Otar Shamugia on Thursday said this year’s hazelnut harvest was expected to be “significantly higher” compared to 2022.
Georgian Agriculture Minister Otar Shamugia on Tuesday announced the launch of a $150 million project jointly financed by the Government of Georgia and the World Bank and aimed to benefit farmers and enterprises by enhancing irrigation services, land management and agricultural support.