Government started two new projects which support agriculture development in Georgia:
Cheap agro-credit program has been initiated by the Ministry of Agriculture in 2013. 11 major banks are involved in this program, where part of loan interest payments is subsidized by APMA (under the Ministry of Agriculture).
Cheap agro-credit program includes two types of loans:
Credit for capital assets (12,000-600,000 USD) - rates are between 12-15% and APMA covers 11%.
Credit for working capital (2,000-100,000 GEL) - rates are between 14-15% and APMA finances 8%.
Grants for agro processing companies – new agriculture processing factories (minimum value of project 200,000 USD) can get grant (maximum 500,000 GEL and 40% of total project) from the APMA. However grant should be used only for purchasing of capital assets (excluding land and buildings) and/or training & technology implementation. Additionally factory should use local raw materials and labor. The project supports only specific sectors and specific regions (production of wheat flour, wine and other alcohol beverages aren’t covered by this scheme).