1. Preferential AgroCredit for Current Assets includes the financing of certain part of the interest rate of loans by the Agency for the current assets of the enterprises producing and processing agricultural products;

2. The Agency ensures co-financing of the loan interests on the basis of the agreement concluded with the beneficiary;

3. Under the component of ‘Preferential AgroCredit for Current Assets' loans shall be given for financing agricultural activities for the following purposes:

  3.1. Purchasing grapes for processing;

  3.2. Purchasing grapes for producing alcohol;

  3.3. Purchasing peach for sale and/or processing;

  3.4. Purchasing substandard apples for processing;

  3.5. Purchasing tangerine for sale and/or processing;

  3.6. Cofinancing annual crops;

  3.7. Tea processing plants.

4. Each Each subcomponent will be activated in case of issuance of the appropriate annual decree of the Georgian Government.

5. In order to obtain Preferential AgroCredit, a potential beneficiary must fulfill the preconditions determined by the financial institutions for granting such type of credits, and meet the requirements of the project.

6. It is allowed to grant more than one parallel loans to one borrower, provided that the total amount of such loans shall not exceed the maximum amount of the loan of the Preferential Agrocredit determined per one beneficiary according to the relevant subcomponent.

7. It is allowed to restructure the loan if as a result of restructuring the total amount of co-financing to be paid by the agency does not exceed the total remaining amount of co-financing under the loan payment schedule on the date of loan restructuring.

8. It is allowed to refinance the loan granted only within the frame of the respective subcomponent at any time during the validity period, thereof, if the initial payable principal loan amount, the term and the total amount of co-financing due by the Agency do not increase as a result of refinancing.

9. Refinancing of other loans with the loans granted under the subcomponent terms is restricted, except the loans granted under the same subcomponent terms on the same season.

10. The commission of the financial institution for extension of the credit shall not more than:

  10.1. Up to 50 000 GEL − 0.5%;

  10.2. 50 001 GEL or more − 0.2%.

11. In the event of repayment of the loan before its scheduled term, the borrower shall not be obliged to pay the prepayment commission fee/fine to the financial institution.

12. In case of failure to pay a relevant amount within the term specified in the loan repayment schedule, the financial institution shall be entitled to impose the fine to the borrower only on the outstanding principal amount. Such fine shall not exceed 0.1% of the outstanding principal amount per each day of delay.

13. In case of loan refinancing by other financial institution, applied commission rate must not exceed the rate set by the National Bank Of Georgia.

14. Loan repayment schedule (including the grace period) shall be determined on the basis of the agreement between the beneficiary and the financial institution granting the credit.

15. The Agency shall monitor the loans issued within the component at any stage of implementation of the project. The form and time of monitoring shall be determined by the Agency. If the violation of terms and conditions and/or the purpose of the project is confirmed, the Agency shall act in accordance with the rules and the procedures provided by the agency along with agreements concluded between the financial institutions and the beneficiaries.

16. The terms and conditions specified in this Article shall also apply to all subcomponents of the component of "Preferential Agro Credit for Current Assets".

17. The terms and conditions specified in this Article shall not apply to the co-financing project.