Under the Subcomponent, loans shall be issued to beneficiaries and the Agency shall co-finance interest on such loans for the purchase of grapes and materials required for wine production, including:

• bottles
• corks
• capsules
• labels
• boxes
  
  

Under the Subcomponent, loans may be issued from August 20 through October 31 of each year, pursuant to the relevant ordinance of the Government of Georgia.

To use the Subcomponent, the potential beneficiary must be registered in the Registry of Farms and Rural Enterprises.

Geographic Coverage

The geographic coverage of the Component includes all municipalities of Georgia.

Loans may be issued only to enterprises designated by the Legal Entity under Public Law - National Wine Agency.

Loan amount: not less than GEL 20,000 and not more than GEL 10,000,000, inclusive.

Loan term: 15 months

Within 12 months after disbursement of the loan (other than a refinanced loan), the beneficiary shall submit an audit report to the financial institution confirming that the loan proceeds were used for their intended purpose. If the beneficiary fails to submit an audit report within the foregoing period, the Agency shall terminate the co-financing agreement.

Based on the information presented in the audit report, a tripartite reconciliation statement shall be executed among the Agency, the beneficiary, and the lending bank confirming use of the loan proceeds by the beneficiary in accordance with the intended purpose of the loan.

The loan interest rate shall be determined based on the amount of the loan. The loan interest rate may be fixed or floating (variable):

In the case of a fixed interest rate, the financial institution shall establish the following annual interest rates:

In the case of a floating (variable) interest rate, the financial institution shall establish the following annual interest rates:

Agency co-financing of loan interest: in an amount equal to the refinancing rate established by the National Bank of Georgia.

The Agency shall make payments in accordance with the loan repayment schedule, concurrently with payments made by the beneficiary on the loan.

Co-financing of loan interest shall commence after a reconciliation statement is executed with the beneficiary and the final loan repayment schedule is established.

The loan shall be repaid under an annuity schedule or a non-standard schedule. The lending financial institution shall determine any grace period applicable to repayment of both principal and interest.

Any loan terms not addressed in this Article shall be governed by the co-financing terms established under the Preferential Agrocredit for Current Assets Component.

General Terms

• Any procurement contemplated by the project shall be carried out by the beneficiary only after execution of the co-financing agreement, from an entrepreneurial natural person and/or legal entity registered in accordance with the legislation of Georgia and/or through importation. In the case of procurement of services, procurement from a natural person shall also be permitted.
• A potential beneficiary may not participate in the Program, and co-financing shall not be disbursed to a beneficiary, if:
  • the potential beneficiary or existing beneficiary, or its founder, member, or shareholder, holds an ownership interest in a legal entity registered in accordance with the legislation of Georgia that supplies the relevant goods and/or services under the project; 
  • the individual entrepreneur itself acts as the supplier of goods and/or services;         
  • the potential beneficiary/beneficiary or its representative serves as a manager of the company supplying the goods and/or services.
    
    

Eligibility Criteria for a Potential Beneficiary

The potential beneficiary must be registered in:

• the Registry of Farms and Rural Enterprises.