Within the framework of the “Preferential Agrocredit Project,” the Rural Development Agency will co-finance the interest rate on loans issued for the purpose of cultivating annual crops. The decision was made at today’s government meeting.

Within the subcomponent, loans will be issued to finance the costs of one operational year for annual crops (vegetables, cereals, and melon crops) and alfalfa. Specifically, at all stages of cultivation of annual crops (vegetables, cereals, and melon crops), in order to reduce current expenses, this includes the purchase of sowing and planting materials, as well as fertilizers and biological plant protection products. The costs of hiring labor and agricultural machinery, as well as fuel expenses, are also covered.

Within the subcomponent, the Rural Development Agency (LEPL) will co-finance the interest rate of the issued loan for a period of no more than 12 months at an annual rate of 9%. The maximum annual interest rate of the loan is set at 18%. The loan amount issued to one beneficiary is determined from no less than 10,000 GEL up to no more than 100,000 GEL, and in the case of cereal crops, from no less than 10,000 GEL up to no more than 300,000 GEL.

The “Preferential Agrocredit Project” is available to individuals, individual entrepreneurs registered in accordance with the legislation of Georgia, and legal entities (except for state/municipal enterprises).