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Preferential Agrocredit Project
Those wishing to participate in programs/projects must submit applications only in Georgian.

Grape processing enterprises that are purchasing grapes for production of alcohol

Within the framework of this sub-component, issue of the credit is allowed only to the beneficiaries, which purchase grape in order of production of branding alcohol. Also it is possible to be financed purchase of the materials necessary for production of brand (bottle, cork, cap, label and box).

Issue of the credit according to the terms defined under this article, is allowed from August 20 of every year including October 31 of the same year, based on the relevant resolution of the government of Georgia (if any). 

Credit may only be received by the enterprises defined by LEPL “Wine National Agency”. The list of the mentioned enterprises will be posted at the web page of LEPL “Wine National Agency” https://wine.gov.ge   

The total amount of agro-credit issued to per beneficiary, for one season, should not exceed to 15,000,000 GEL, and maximum term of the preferential agro-credit should be defined for 36 months. 

The agency will implement co-financing of the interest benefit of the credit taken for purchase of grape and the materials necessary for production of the brand (bottle, cork, cap, label and box).  The agency will not implement co-financing of the interest benefit on the part of the taken credit, which is not used for purchase of grapes and the materials necessary for production of the brand (bottle, cork, cap, label and box) by the beneficiary. 

The beneficiary is obliged, until April 30 of every year, to submit an audit report to the serving financial institution (for the loans in the amount including 500 000 GEL, the entities existed in the registry of the “accounting, reporting and audit supervision service” of the state sub-departmental institution included in the Ministry of Finance of Georgia, which have I, II,  III or IV category; B) For the loans approved from the amount of 500 001 GEL, the entities existed in the registry of the “accounting, reporting and audit supervision service” of the state sub-departmental institution included in the Ministry of Finance of Georgia, which have I, II,  III category;  C) LEPL “Levan Samkharauli National Forensics Bureau”) about the paid amounts for purchase of grape on the season of the current year, which is used for production of the branding alcohol, also about amount of the branding alcohol produced from purchased grape and the materials necessary for brand production (bottle, cork, cap, label and box). Based on this information will be concluded a tripartite comparison act between the agency, the beneficiary and the lending bank regarding the utilization of the loan by the beneficiary in accordance with the purpose of the loan.

Interest rate of the loan is determined in accordance with its volume. Interest rate of loan can be fixed or floating.

In case of fixed interest rate the following annual interest rates shall be determined by the financial institutions:  

Loan volume Interest rate
From 20,000 Gel 150,000 Gel inclusive No more than 16%
From 150,001 Gel 600,000 Gel inclusive No more than 15%
From 600,001 Gel 1,500,000 Gel inclusive No more than 14%
From 1,500,001 Gel 5,000,000 Gel inclusive No more than 13%
From 5,000,001 Gel 15,000,000 Gel, inclusive No more than 12%

In case of floating (variable) interest rate the following annual interest rates shall be determined by the financial institutions: 

Loan volume Interest rate
From 20,000 Gel 150,000 Gel, inclusive No more than refinancing rate determined by the National Bank plus 8%
From 150,001 Gel 600,000 Gel, inclusive No more than refinancing rate determined by the National Bank plus 7%
From 600,001 Gel 1,500,000 Gel, inclusive No more than refinancing rate determined by the National Bank plus 6%
From 1,500,001 Gel 5,000,000 Gel, inclusive No more than refinancing rate determined by the National Bank plus 5%
From 5,000,001 Gel 15,000,000 Gel, inclusive No more than refinancing rate determined by the National Bank plus 4%

The Agency will ensure the co-financing of the interest rate of no more than 36 months of preferential agro-loan, simultaneously with the sum paid by the beneficiary, in amount of annual 12% of basic sum of the loan.

The loan is repaid with an annuity or a non-standard schedule. The financial institution should give the beneficiary a grace period not less than May 15 of the following year for the payment of both the principal amount and the interest benefit.

Terms of present sub-component not envisaged by the present component will be settled in accordance with the general terms on component of operating assets.

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