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);

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

8. a) Natural citizen of Georgia (from 7000 GEL to 75 000 GEL);

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

10. 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.

11. Within the subcomponent, the Agency shall provide co-financing of the loan interest rate for not more than 48 months, which shall be in parallel with the amount paid by the beneficiary, in the amount of 8% per annum of the principal loan (secondary collateral does not apply to loans issued under the subcomponent).

12. The interest rate of the loan is determined based on its volume. The loan interest rate may be fixed or floating:

13. a) In case of a fixed interest rate, the following annual interest rates shall be set by the credit institution:

b) In case of the floating interest rate, the Financial Institute should establish the following annual interest rates: 

14. The beneficiary is obliged to purchase / register the equipment within 6 months after the loan is issued by the bank. In addition, the beneficiary is obliged to submit an audit report to the financial institution within 7 (seven) months after the loan is issued to confirm the expediency of the loan. If the beneficiary fails to submit the audit report within the said period, the Agency shall suspend the co-financing of the beneficiary, and after 12 months the co-financing shall be terminated by the Agency. In this case, the agency is entitled to charge the beneficiary a refund of the full amount of co-financing paid by the Agency. In addition, the beneficiary may use the loan amount to pay the fee for the audit report, but not more than 1% of the loan amount and not more than 15,000 GEL;

15. Equipment purchased under a subcomponent loan shall be legally encumbered in favor of the lending financial institution for the purpose of securing the loan during the entire period of co-financing of the Agency.

16. It is inadmissible for the beneficiary to alienate or take out the equipment purchased under the subcomponent outside the territory of Georgia during the period of co-financing of the interest rate on the loan by the Agency.

17. In order to purchase timber-manufacturing equipment, loans will be issued by financial institutions from May 1, 2021 to legal entities and individual entrepreneurs registered in Akhmeta, Dedoplistskaro, Kvareli, Telavi, Tianeti, Chokhatauri, Lanchkhuti and Ozurgeti municipalities.

18. Within the subcomponent, the loan amount may not be given to the beneficiary in cash unless the loan amount is used to purchase equipment and / or implements through import. In such a case, it is permissible to give cash to the beneficiary only for the purpose of transporting and clearing the goods.

19. Conditions not provided for in this subcomponent are governed by the fixed asset component