- What is the function of the Agricultural Projects Management Agency?

- The main task and function of the agency is the project planning in the field of government policy on  agriculture and their implementation. Two projects have already been launched.

In particular, small farmers support program that includes distribution of cards for the purchase of agricultural and raw materials.

This project is successfully completed and the card-holders can cash them  until August 1.

Apart from that, 190 thousand hectares of land have been plowed within the project, and according to the preliminary data, most plowed lands are sown, except for rare exceptions.

So the project can already be assessed as successful.

As for the second project - "Preferential agro- credit", which is a logical continuation of small  farmers support program, we have helped farmers to cultivate the land and buy seed materials, pesticides and other.

As for the third component, it provides funding of large enterprises, including the creation of new enterprises and issuance of long-term investment loans or the main means. Its term is 7 years, minimal loan amount is 50 thousand USD and maximum -  600 thousand USD.

- How does the flow of the projects meet your expectations?

- We are satisfied with the project despite the fact that only three months have passed since the start of the project and in such a short period of time a serious assessment can’t be  probably made, but, nevertheless, statistical data provides a basis for assuming that the project has  a  very good start. This program will continue until the end of the year and if a final evaluation is positive, we are going to continue it next year.

Loans worth 50 million GEL have already been issued in the frames of the project, this number changes every day.

The first component is a commodity loan, in the frames of which loans worth 850 thousand GEL were issued to 1 544 farmers.

Within the second component a loan worth 27 200 000 GEL was issued  to  1 400 farmers.

As for the third component, 12 600 000 USD were issued to  96 companies. According to official data of the National Bank as of April 1, agro-loan portfolio amounted to 56 million GEL, and we have issued 50 million GEL during  three months.

- What can you say with regard to start-ups?

- Start-ups theme was of a very keen interest. In my opinion, it was stirred. What is start - up?  It is usually a new project launched by business - group or the creation of  a new enterprise  unit by an existing business. According to the latest data, 13 new businesses have been created as a start - up. In total 2 900 000 thousand USD were issued to fund starts - ups.

- What results has this project brought in terms of employment?

 

- Funding of enterprises has just begun. These businesses do not work. They began to buy equipment,construction. When the enterprises are set up and start working, then we will have statistics. This is inthe third component. While in the second component there are mainly self-employed.

 

- In what terms are 5 - 100 thousand GEL  loans issued?

- The agency that implements these projects and the fund which finances them does  not accept  resolution on the issuance of loans. This is absolutely banks’ discretion. We only set the conditions of the project as well as criteria...

- In what terms should the loan be repaid?

- In the second component the duration of  the loan may be 18 months for the working capital  while  for the purchase of the main means -  24 months.

- What are the main problems identified in the course of the project and taking them into account, what  recommendations can you give to farmers?

- The public  had an  expectation that  the majority received  the loan. Of course, it was not so intended. Everyone cannot get a loan, a loan accompanied with a huge responsibility. It is envisaged that it sholuld be  returned and if it is not repaid , borrowers will face the problem, as well asorganizations  issuing loans and the country, because it means the expenditure of resources in vain.

So we think  that the banking sector is the best evaluators of credit risks. Those people who had the expectation that they could easily obtain loans, in some cases, couldn’t get the loans.

In addition, we have developed agro-leasing component within the project, which is almost similar to the third component and the only difference is that the project is financed by leasing instead of a loan. Those who are unable to purchase equipment through a third component, can benefit from leasing and mortgage problem will be removed.

- Originally it was decided to set up 60 enterprises, but later  Prime Minister announced about the creation of 100 new enterprises, whether there are enough resources in the  fund and do you expect  the emergence of new financers in the future?

- The pace of the project suggests that more projects can be financed than it was  planned. I think the Prime Minister’s expectations regarding the creation of more enterprises are correct. The amounts for  the interest rate co-financing exist and there will not be any restrictions in this regard.

Source: www.commersant.ge