When creating a greenhouse for growing berry crops, the state will finance a loan to the farmer for four years at a rate of 11% per annum.
The Georgian government has approved amendments to the Preferential Agricultural Credit project, which provides targeted loans to farmers at a low rate, the country’s Ministry of Agriculture reports.
The Ministry of Agriculture is actively working on the development of agriculture and is implementing programs to help farmers for this. One of the largest is the “Preferential Agrocredit”, which has been implemented in the country since March 27, 2013.
The government has approved changes to several sub-components of the project.
Thus, within the framework of the “Preferential Agro Loan for Fixed Assets”, at the expense of the loan, it becomes possible to finance the costs of purchasing berry seedlings for placement in a greenhouse and pots, if the purpose of the loan is to create a greenhouse for growing berry crops.
The state will finance a loan to the farmer for four years at a rate of 11% per annum. The loan amount will be from 20 thousand to 1.5 million lari.
Under the sub-component of the project “Growing New Perennial Crops”, beneficiaries will have the opportunity to use the loan amount to install protective nets in perennial orchards or to repair existing ones.
133 million GEL was spent on laying out perennial gardens throughout Georgia >>
It also becomes possible to construct an auxiliary building for the amount of the loan. For the cultivation of new perennial crops, the percentage of annual co-financing will be 11%. The state will finance a loan to the farmer for 66 months (5.5 years) at a rate of 11% per annum. The loan amount ranges from 20 thousand lari to 1.5 million lari.
In the component of the project “Preferential agroleasing”, which serves the development of equipment and enterprises that create additional value of agricultural products, it becomes possible to lease a vehicle integrated with non-stationary production lines.
The percentage of annual co-financing for the subsidized agroleasing component is 11%. The state will finance a loan to the farmer for 36 months at a rate of 11% per annum. The loan amount ranges from 20 thousand lari to 1.5 million lari.
The main objectives of the “Preferential Agrocredit” are to improve the production processes of primary production, processing and storage-marketing in agriculture by providing farmers and agricultural entrepreneurs with cheap, long-term and affordable funds.
Over the nine years of its existence, a number of changes have been made to the project, based on the needs of those existing in the industry.
