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Parliament Members Proposes to Establish Agriculture Development Bank

Parliament member Beka Natsvlishvili told the Commersant that a commercial bank is not oriented on agriculture sector development, therefore, commercial banks finance field with less risks and rapid profits.

“In general, commercial banks are oriented on rapid profits, Therefore, they prefer to finance projects with less risks, not projects that would assist domestic farmers in business development. Therefore, we believe that it would be expedient to establish Agriculture Development Bank or Fund. We plan to submit this initiative to the Parliament”, Natsvlishvili said.

Alternative financial resources are necessary to finance both agriculture and industrial projects, while government funds mainly make focus on services and tourism, which cannot create added value, Natsvlishvili said.

Therefore, it is necessary that the Government issue similar loans for agriculture sector development. Therefore, we believe that financial resources required for agriculture sector development should be accumulated by Government. Cooperatives and farmers will receive financial resources in reasonable way. Similar practice is widespread in many countries and I believe that industrial projects should be financed by Government”, Natsvlishvili noted