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Friday,
August 3,
2007, #147 (1414)
Developing domestic agriculture is a priority for Georgia, said the ministers of finance and agriculture as they launched a project to invigorate the industry. Speaking August
1 at the Sheraton Metekhi Palace, Agriculture Minister Petre Tsiskarishvil
and Finance Minister Alekso Aleksishvili, together with representatives
of the International Fund for Agricultural Development (IFAD), said
the project would use its USD 34.7 million budget to fund developments
and subsidize business loans. This support will be a stimulus for farms of all sizes, Aleksishvili said. "I hope that more banks and businesses will join us, allowing more money to be well spent," he said. Tsiskarishvili agreed, adding that the agricultural industry in Georgia holds much promise. "I appeal to everyone with goods ideas to be part of this process, because today is the day to…invest in agriculture and develop this field," he said. The agriculture minister took the opportunity to address concerns about bread prices, where Georgia has seen increases of ten to 15 tetri since the beginning of summer. There's a wheat shortage in world, he said, pushing up flour prices for bakers. He did not suggest any link with the agricultural development project. Of the initiative's total budget, about USD 10.4 million was loaned to banks to help open credit lines for farm businesses. Five Georgian banks are taking part in the project: TBC Bank, Bank Republic, Basis Bank, Kartu Bank and Standard Bank. More are invited to join, officials said. Loans are going out to a wide variety of ventures-Bank Republic recently issued a loan of about USD 50 000 for growing mushrooms, while Basis Bank is financing vineyards with USD 81 000. "Our bank is putting very attractive terms on our loans. Loans can be had for up to ten years, with quite low interest rates. The first thing we look at when considering a project is the [projected] profitability of the business, and of course a guarantee that the business is legal," said the head of Basis Bank's corporate loan department, David Tsaava. The World Bank says they are working to promote long-term economic growth in Georgia, by creating jobs, improving social services, and protecting the environment. "Our goal
is to improve the productivity of agriculture, increase the agriculture
sector and provide employment. By providing financing we hope to help
existing business to extend cooperation and employment," World
Bank country manager Van Roy Southworth told the Messenger.
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IFAD, World Bank
helping Georgian agriculture
