Leasing subcomponent for financing the food and energy efficient industries

1. Within the subcomponent an entrepreneur wishing to obtain a lease shall apply to the leasing issuer. The leasing issuer, in accordance with this program and the criteria determined by it, shall, upon approval of the leasing project, submit the documents furnished by the entrepreneur to the Agency, which shall certify or give a grounded refusal to co-finance the leasing project. 

2. The minimum amount of the value of the subject of leasing issued by a leasing issuer to one leasing beneficiary within the subcomponent shall be not less than 1,500,000 (one million five hundred thousand) GEL, and the maximum total amount shall not exceed 5,000,000 (five million) GEL. Under the subcomponent it is allowed a simultaneous leasing, in which several leasing projects are issued to one leasing beneficiary in the same field, if the total value of leasing projects does not exceed 10,000,000 (ten million) GEL. 

3. The Agency shall, within the framework of the subcomponent, co-finance the interest not exceeding 24 months of the issued lease in the amount of 12% per annum for not more than 26 months from the date of concluding the agreement between the Agency and the leasing beneficiary. 

4. The annual interest rate charged by the leasing issuer to the program leasing beneficiary under the subcomponent shall be no more than the refinancing rate established by the National Bank plus 7 (seven) percent. 

5. The Agency shall co-finance the annual interest rate accrued on the value of the subject of leasing established for the leasing beneficiary by the leasing issuer in accordance with the rules established by law, by transferring the amount to the leasing issuer, in accordance with the schedule established by the relevant agreement. 

6. The amount of the value of the subject of leasing to be issued to one leasing beneficiary by the leasing issuer, which meets the criteria defined by this subcomponent, but the total value exceeds the maximum amount specified by this subcomponent, shall be determined by the leasing issuer under the resolution of the Government of Georgia in compliance with the annual interest rate accrued to the value of the subject. 

7. In case, stipulated in the paragraph 6, in order to co-finance the annual interest rate accrued to the value of the subject of leasing to be issued to the leasing beneficiary by the leasing issuer the entrepreneur shall apply to the Agency with appropriate justification, which, in turn, shall submit the issue for the review through the Ministry of Environment Protection and Agriculture to the Government of Georgia. 

8. Under the subcomponent, leasing (s) are issued for the following purposes:

A) Financing of primary agricultural companies:

A.a) Greenhouse for vegetables, berry crops, herbs and mushrooms;

A.b) Livestock farm (dairy-meat);

A.c) Pig farm;

A.d) Poultry farm (only for meat incubation and breeding purposes);

A.e) Farm of animals with valuable fur;

A.f) Fish production;

A.g) Beekeeping; 

B) Financing of agricultural products processing plants:

B.a) Fruits, berries, vegetables, mushrooms, citrus processing;

B.b) Walnuts and hazelnuts, ground hazelnuts and other processing;

B.c) Wool and leather processing;

B.d) Bay leaf, tea, tobacco processing;

B.e) Meat and milk processing;

B.f) Vegetable fats (oil, margarine, butter) and halva production;

B.g) Essential oils and spices production;

B.h) Slaughterhouse arrangement;

B.i) Beekeeping processing;

B.j) Agricultural animals, birds and fish food production;

B.k) Bread and bread products production;

B.l) Producing Pasta products;

B.m) Producing wine and alcoholic beverages obtained as a result of grape processing under the following conditions:

B.m.a. The leasing beneficiary is obliged, during the next 5 years after receiving the lease, to process an additional 1 ton of grapes on the largest volume of grapes processed during the harvest season for last 3 years of each year, calculating by each GEL 5,000 received;

B.m.b. If the leasing beneficiary has not processed the grapes during the harvest season in the last 3 years, within the next 5 years after receiving the lease, it shall be obliged to process 1 ton of grapes calculating by each GEL 5,000 received.

B.m.c. The first year of fulfillment of obligations is determined by the harvest season of the year following the receipt of the lease. 

C. Financing of infrastructural facilities:

C.a) Agricultural products storage warehouses;

C.b) Grain dryers;

C.c) Agricultural product storage refrigerators; 

D. Following types of activities can be financed by leasing (s) within the subcomponent:

D.a) Repair and arrangement of existing buildings;

D.b) Construction and arrangement of new buildings;

D.c) Purchase and installation of technological lines, climate control equipment and tools, freezing devices, power generators, irrigation systems, milking equipment, feed preparation and others;

D.d) Connection to water, electricity and natural gas supply sources and sewerage;

D.e) Fencing of agricultural facilities, arrangement of protection systems;

D.f) Purchase and installation of storage chambers, racks, tanks and other technological equipment for storage;

D.g) Purchase of special equipment and trailers (loaders, manure carriers, feed selecting and supplying equipment and others) required for the operation of the enterprise;

D.h) Construction and arrangement of fish tanks and ponds; 

E) Energy efficient enterprises:

E.a) Production of energy efficient stoves;

E.b) Energy efficient furnace fuel manufacturing enterprises. 

9. Within the framework of the subcomponent, the following activities are not allowed to be financed by leasing (s):

a) Purchase of land;

b) Purchase of existing agricultural buildings, greenhouses and others;

c) Purchase and repair of agricultural machinery (tractor, combine, etc.), as well as trailers (plow, harrow, sowing, fertilizer, etc.);

d) Purchase, repair and repair of transporting, flying and sailing equipment;

e) Construction, repair and equipping of office space only. 

10. Within the subcomponent, the funded company must meet the following minimum requirements:

a) Company must meet the safety, environmental protection, sanitary and food safety requirements defined by the legislation of Georgia;

b) The buildings and the surrounding area of ​​the company must have an aesthetic external appearance. 

11. Following terms and conditions must be envisaged in the contract to be concluded with the leasing issuer:

a) Leasing issuing commission fee should not exceed 0.1% of the total cost of the leasing project;

b) In case of full or partial earlier payment of the leasing value within 6 months after the execution of the relevant contract, the advance payment commission fee and / or fine shall not exceed 2% of the amount paid in advance. After 6 months from the day of conclusion of the relevant agreement, in case of full or partial earlier payment of the leasing value, the advance payment commission fee and/or fine shall not exceed 1% of the amount paid in advance;

c) Leasing beneficiary is obliged to notify the leasing issuer about the earlier redemption of the leasing subject 30 calendar days before the redemption of the subject of leasing;

d) In ​​case of non-payment of the amount within the timeframe specified in the schedule, the leasing issuer is entitled to accrue to the program leasing beneficiary a fine / penalty only on the payable, overdue leasing fee, which should not exceed 0.1 percent of the overdue amount;

e) In case of refinancing the leasing project by another leasing issuer, the leasing issuer is authorized to use the maximum rates of the refinancing commission established by the National Bank of Georgia at the time of refinancing;

f) Within the scopes of the sub-component parallel lease may be issued, if the sum of parallel leases does not exceed the maximum limit of the lease determined per leasing beneficiary under this subcomponent and the amount of each parallel lease is not less than the minimum limit amount (the sum of leasing and loans issued for the subcomponent of the preferential Agro-leasing fixed assets component for financing the food industry must not exceed GEL 5 000 000);

g) Restructuring of the issued lease within the subcomponent is allowed only if the total amount to be paid by the Agency as co-financing for the initial leasing, which was provided for in the terms of the primary lease, does not increase;

h) Within the sub-component, at any stage of the co-financed leasing agreement, the Agency is authorized to monitor the leasing issuer and the leasing beneficiary in order to clarify the fulfillment of the conditions stipulated in the agreement. In case of detection of violations, the Agency will act in accordance with the agreement concluded with the parties (in case of grape processing company, the leasing beneficiary must submit additionally the certificate on procurement of the relevant volume of grapes to the Agency from the LEPL National Wine Agency not later than December 15 of each year).