Georgia’s new agro-financing model approved eight projects worth GEL 4 million in its first two months, according to official data obtained by BMG. Agribusinessman Beka Gonashvili said the result was expected, as businesses are still adapting to major changes in the program and the Rural Development Agency takes on new credit-risk assessment responsibilities.
Gonashvili noted that the new system may initially slow applications, as farmers must adapt to working directly with the agency rather than relying primarily on banks. However, he sees a positive side to the model, arguing that stricter requirements could filter out inexperienced or unprepared entrants and encourage more professional participants in agriculture.
One of the key challenges, he said, is securing full financing for medium-sized farms. Discussions are underway between the Agriculture Ministry and banks on potentially placing approved co-financing funds in bank deposits as additional security. Gonashvili said this could help, but would not eliminate other risks, including borrowers’ credit histories and the banks’ assessment of their ability to implement projects.
Gonashvili also believes the program needs adjustments beyond its GEL 2 million co-financing ceiling, pointing to different limits and rules for specific agricultural sectors. He said the Agriculture Ministry has already begun collecting comments and proposals from the private sector, raising hopes that the program will be gradually refined and better aligned with market needs.
