Ministry of Environmental Protection and Agriculture of Georgia Ministry of Environmental Protection and Agriculture of Georgia

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The state will repay the interest on a loan for growing annual crops.

The adoption of the sub-component will increase  the self-sufficiency rate in crops per year, including 
promotion of primary production of grain and alfalfa.

The Rural Development Agency will co-finance the interest at an annual rate of nine percent, for 12 months at longest, for no more than 14 months after the loan is issued, as soon as the beneficiary confirms that the loan has been spent on purpose. The maximum annual interest rate of the loan is set at 18%. Under the project, the loan amount per beneficiary is set at GEL 5,000 to GEL 100,000.

The purpose of the loan granted within the sub-component is to cover the costs of annual crops and alfalfa, also, pesticides, organic and mineral fertilizers of the seed and planting material and the biological crop production products, labor costs for hiring labor resources and agricultural machinery for the annual crops, and the cost of the fuel and lubricant of the equipment used.

The plot of land where the loan amount is planned to be invested must be owned, co-owned, or used by the borrower under the legislation of Georgia (in case of co-ownership, there must be the consent of the co-owners regarding the use of the property during the loan period, and in the case of use, its validity period should not be less than the loan period).

The co-financing may be received by citizens of Georgia, individual entrepreneurs, and legal entities registered under the law of Georgia (except for state / municipal enterprises).
Issuance of agro-credit will start after the ordinance's enactment; Financial institutions will be able to issue loans until October 31, 2022.
 

The sub-component "for financing annual crops" has been added to the project since 2020.