Over ₾350 Million in Concessional Agro-Credit Issued for Agricultural Machinery Purchases

In an interview with the "Business Partner" program, Tornike Kapanadze, Head of the Project Management and Technical Support Department of the Rural Development Agency, announced that more than ₾350 million in concessional agro-credit has been issued for the purchase of agricultural machinery.

According to Kapanadze, the program finances 8% of the interest expense on loans for equipment over four years.

"This year, we have three grant programs that provide co-financing for agricultural machinery of various capacities. The most active is the co-financing program for small-sized agricultural machinery in highland settlements, where the Rural Development Agency provides 70% co-financing from ₾1,200 to ₾2,500. As of today, we have received more than 5,500 applications, which is very high," Kapanadze said.

Additionally, Kapanadze highlighted two other grant programs:

• A co-financing program for harvesting equipment, offering 30% financing up to ₾150,000 for high-value, large-dimension equipment.
• A co-financing program for agricultural cooperatives, providing 50% financing up to ₾100,000 to help enlarge and strengthen farms.

"The Ministry is addressing the sector's equipment deficit, which is shrinking yearly due to the influx of valuable equipment facilitated by these grant programs. The grant programs positively impact this issue. Additionally, we subsidize the interest of the concessional agro-credit, covering 8% of the interest expense over four years. Approximately ₾350 million in loans have been issued for the purchase of equipment," Kapanadze explained.