Posted: 6 months ago

Bank of Georgia Issued ₾1 Million Credit for Winery Development in Co-Financing Project

Aleksandre Melkadze, head of agribusiness banking services at Bank of Georgia, recently shared insights into a new co-financing initiative aimed at bolstering the winery sector. Speaking on the "Business Partner" program, Melkadze revealed that the program, launched in September, has already issued credits totaling 1 million GEL.

The co-financing scheme is designed to support tourism-related businesses, such as family hotels and gastro-tourism ventures, in establishing or renovating wineries. This endeavor, Melkadze notes, is expected to serve as an additional revenue stream for participants. "The unique aspect of this program is its income forecast-based structure. Previously, customers could only receive credit up to 100% of their forecasted income, but now they're eligible for up to 150%," he explained.

Moreover, Melkadze highlighted the inclusion of this project within the preferential agrocredit framework, which offers a substantial 11% subsidy over 48 months.

Research in the Kartli and Kakheti regions underscored the demand for such services, although the program is open to applicants from any region with relevant experience. Melkadze anticipates the program's efficacy will become clearer in the upcoming spring and summer months, as construction activities typically slow down during winter.

This initiative represents a significant step by the Bank of Georgia in supporting and expanding the country's burgeoning winery and tourism sectors.