Subcomponent for agricultural and woodworking mechanization

1. Preferential agro-credit is issued within the subcomponent only for the purchase of agricultural machinery and implements and/or timber manufacturing equipment and implements (hereinafter – “Equipment”) (compliance of timber manufacturing equipment and implements must be certified by a certificate issued by the LEPL National Forestry Agency), which can be purchased only by non-cash payment.

2. Procurement of an implements under the subcomponent is allowed only if the beneficiary has the relevant equipment in the registered ownership (it must be confirmed by appropriate documentation) or the purpose of the loan is the joint procurement of the relevant equipment (s) implement (s).

3. Equipment under the subcomponent can be purchased in the local market (from an individual entrepreneur and/or legal entity registered in Georgia) or through import.

4.  Leasing equipment must be new (except for equipment to be purchased from "Agricultural Logistics and Services Company" LLC (S/C: 206348736) and/or "Agroservice Center" LLC (S/C 406321065), in particular, it must meet the following two conditions promise:

a) At the moment of leasing the equipment, the warranty issued by the equipment manufacturing company must be valid (except for the equipment to be purchased from "Agricultural Logistics and Services Company" LLC (S/C: 206348736) and/or "Agroservice Center" LLC (S/C 406321065);

b) The equipment must have been manufactured no more than 3 calendar years prior to leasing (except for the equipment that can be leased from Agricultural Logistics and Services Company LLC (S/C 206348736) and/or Agroservice Center LLC (S/C 406321065);

5. The following persons can use preferential agro-credit within the subcomponent:

a) Natural citizen of Georgia (from 7,000 GEL to 75,000 GEL);

b) Individual entrepreneurs or legal entities registered in Georgia (within the limit specified in the subcomponent, in case of any amount).

6. Preferential agro-credit within the subcomponent is defined from GEL 7,000 through GEL 1,500,000. The sum of the preferential agro-credit (s) and agro-leasing (s) taken by the beneficiary within the subcomponent of the preferential agro-credit for fixed assets for agricultural and timber production mechanization and the subcomponent of the preferential agro-leasing component for agricultural and timber production mechanization should not exceed 1,500,000 GEL.

7. Within the subcomponent, the Agency's targeted co-financing amount is 9% of the lessor's annual investment, which the Agency will pay to the lessee in accordance with the payment schedule for the lease fee established by the contract, after the lease fee has been paid.

8. Within the subcomponent, the Agency will co-finance the lease fee for up to 48 months, for no more than 50 months from the issuance of the agri-lease.

9. It is prohibited to export the leased item (agricultural equipment) financed within the subcomponent outside of Georgia during the co-financing period by the Agency.

10. The terms of the subsidized agri-lease that are not covered by this subcomponent are regulated by the general terms of the subsidized agri-lease component.