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In accordance with the decision of Georgian Government, amendments are made to the preferential agro-credit project
Certain changes have been implemented to the ongoing projects implemented by the Ministry of Environmental Protection and Agriculture to reduce the economic damage caused by the spread of the novel coronavirus in the country.
During the 2020 grape harvest season, grape companies are given the opportunity to take advantage of the preferential agro-credit. As a result of the amendments made to the project, the following components will be launched: "Grape Processing Enterprises" and "Grape Processing Enterprises, which will purchase grapes for the production of alcoholic drinks, spirits."
In the sub-component "Financing of the food industry," the limit of preferential agricultural credit is increased from 5 million GEL to 10 million GEL. Beneficiaries will no longer be required to process a certain amount of grapes, if they receive a loan for the production of wine and alcoholic beverages as a result of grape processing.
In the leasing sub-component within the frame of the "Financing the food industry," the amount of leasing was increased from 5 million GEL to 10 million GEL. The term for co-financing the leasing agency's interest rate will be extended for a period of not more than 36 months (instead of not more than 24 months) in the amount of 12% per annum.
Aimed to support the primary processing of hazelnuts, a secondary collateral component for loans issued for working capital in hazelnut production has been added to the project. Under this component, the secondary collateral will be reimbursed by the state within the next 18 months after the issuance of the loan or its first tranche, but not more than 50% of the total amount of each new loan.
The program also includes a sub-component to facilitate the tea procession, which involves issuing a loan for working capital for the acquisition of tea. The amount of the credit granted to one beneficiary teeters from 20,000 GEL to 5,000,000 GEL. The co-financing period will be 12 months.