Georgian farmers will be able to get low-interest loans for the production of annual crops, following the latest changes to the preferential agro-credit state program, Georgian Agriculture Minister Otar Shamugia announced on Monday.
The Government will subsidize nine percent of the loans, with farmers to be able to finance the cash resources needed for their working capital – such as seed materials, fuel and equipment rental.
Shamugia said the interest rate for the loans would not exceed 18 percent, based on the Government’s decision.
We will subsidise at least half of the interest rate under this project. We think this will significantly contribute to the cheap monetary resources for our farmers for the production of annual crops in the country,” the Minister said.
Shamugia also announced the state would co-finance 80 percent of costs of establishing vegetable storage farms for agricultural cooperatives.
Farmers can unite to form a cooperative, and if they meet the conditions set out in a specific government decree, they will receive co-financing from the state for vegetable storage farms in the form of a grant of 80 percent of the total cost,” Shamugia added.
The Minister said in recent years a total of 4.5 billion GEL ($1.3bln/€1.2bln) had been invested in the development of agricultural production in Georgia.