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3 Geo r g i a Agriculture Finance Bulletin Ministry of Agriculture of Georgia will help farmers produce eco-products Farmers will Have Better Access to Agricultural Inputs with US Government Support Banks’ Association Predicts Drop in Prices of Credits Belgian and Dutch Companies Helping Georgia Become Export-Oriented Country
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Georgian Agriculture Finance Bulletin Edition #3, January 2013
Contents State Initiatives Ministry of Agriculture of Georgia will help farmers produce eco-products ............................... 2 Ministry of Agriculture of Georgia announced 900 vacancies for tractor operators ..................... 2 The Government of Georgia to develop new principles of privatization of agricultural land .......... 2 Government States Citrus Realization Problem Solved 26 thousand tons of citrus were sold abroad 2 “ProCredit Bank” Ready to Issue Low-interest Loans in Frameworks of One Billion Fund ............. 3 The Idea of Co-operative Bank is in “Testing” Mode ............................................................ 3 Economy Ministry Says Two of Three Investment Funds already Launched................................ 3 Issuing compensation to the population affected by the disaster in Kakheti starts on January 21... 3 GEL 100 million Compensation for Last Year’s Kakheti Hailstorm ........................................... 4 About 50 irrigation channels will be restored in the beginning of the season—Ministry of Agricultur 4 2768 farmers affected by the disaster have received compensation ........................................ 4 MFOs might be engaged in Projects Funded by Agricultural Fund, Experts predict the reduction of interest rates on credits after the launch of the Fund.......................................................... 4
International Assistance Georgian government has sent a letter to the World Bank requesting a cheap credit to finance agriculture 5 Farmers will Have Better Access to Agricultural Inputs with US Government Support .................. 5
Private Sector Banks’ Association Predicts Drop in Prices of Credits ........................................................... 6 Hungarian companies to invest in agriculture of Georgia ...................................................... 6 Belgian and Dutch Companies Helping Georgia Become Export-Oriented Country ....................... 6 Note: The Georgian Agriculture Finance Bulletin presents a monthly roundup of headlines and news stories related to investments and financing flows to Georgia’s agricultural sector. This bulletin is prepared by Business & Finance Consulting—a Swiss-based development finance consulting company with a long history of working in Georgia. Currently, BFC is implementing the Agricultural Lending Programme for KfW. Read more »
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Agriculture Finance Bulletin, January edition
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State Initiatives Ministry of Agriculture of Georgia will help farmers produce eco-products The Ministry of Agriculture of Georgia, will contribute to the country ’s initiatives to help farmers in the production of environmentally friendly products, said the head of department, David Kirvalidze. Read More» January3rd, 2013, Bizzone.info Source: http://bizzone.info/agriculture/2013/1357236910.php
Ministry of Agriculture of Georgia announced 900 vacancies for tractor operators Ministry of Agriculture of Georgia LLC “Mekhanizator” announced 900 vacancies for tractor operator-drivers, according to the press service of the Ministry Read More » January 4th, 2013, NewsGeorgia.ru Source: http://newsgeorgia.ru/society/20130104/215451743.html
The Government of Georgia to develop new principles of privatization of agricultural land The government team is working on the new criteria and principles of privatization of agricultural land and the process should be completed in next few weeks. After this, Public will be informed about the changes that will allow future regulation of this issue. At this stage, the process of privatization of agricultural land is temporarily halted Read More» January 10th, 2013, Bizzone.info Source: http://bizzone.info/agriculture/2013/1357844434.php
Government States Citrus Realization Problem Solved 26 thousand tons of citrus were sold abroad 26 thousand tons of citrus harvested in Adjara have been already sold in foreign markets. According to Minister of Agriculture of the Autonomous Republic, Zaur Putkaradze, 26 thousand tons of citrus were exported to Armenia, Uzbekistan, Moldova, Azerbaijan, Turkey and Kazakhstan. Georgian citruses entered into the Russian market through different countries and now more than 400 tons of crops were sold. Read More» January 10th, 2013, Commersant.ge Source: http://commersant.ge/eng/index.php?id=4217
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“ProCredit Bank” Ready to Issue Low-interest Loans in Frameworks of One Billion Fund Commercial banks comment on the government’s plans to establish an agricultural cooperative bank. As we reported, the Georgian government was working on the concept of a cooperative bank and was holding consultations with such banking giants as the French “Credit Agricole” and the Dutch “Rababank”. The Ministry of Agriculture is conducting negotiations with international financial institutions. Read More» January 15th, 2013, Radio “Commersant”, FM 95,5 Source: http://commersant.ge/eng/index.php?id=4263
The Idea of Co-operative Bank is in “Testing” Mode The Ministry of Agriculture makes explanations regarding the creation of a co-operative bank on radio “Commersant”. The Ministry says that the idea is in “testing mode” and it’s too early to talk about a competitor creation for commercial banks, a structure of cooperative bank and the reasons for its creation. Read More» January 16th, 2013, Commersant.ge Source: http://www.commersant.ge/eng/index.php?id=4279
Economy Ministry Says Two of Three Investment Funds already Launched Two of the three investment funds announced by the Prime Minister have been launched. First Deputy Minister of Economy states on radio “Commersant” that the structure of the Investment Fund under the Partnership Fund and the One Billion Agriculture Fund has been approved. Read More» January 17th, 2013, Commersant.ge Source: http://commersant.ge/eng/index.php?id=4284
Issuing compensation to the population affected by the disaster in Kakheti starts on January 21 Issuing monetary compensation to the victims of the disaster in the spring and summer of last year in the region of Kakheti starts on January 21, the IA Regnum reported. According to the Ministry of Regional Development and Infrastructure of Georgia, 95 million lari (about $ 58 million) has been allocated for this purpose. 28,500 affected families will receive compensations depending on the size of the damage. Read More » January 21st, 2013, Georgiantimes.ge Source: http://www.georgiatimes.info/en/news/85646.html
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GEL 100 million Compensation for Last Year’s Kakheti Hailstorm PM Bidzina Ivanishvili’s charitable fund, Cartu, has allocated GEL 95 million (about USD 57.2 million) to distribute as monetary compensations to locals in five municipalities of the Kakheti region for damage inflicted by heavy rains, hailstorm and flooding in July, 2012. In addition, Ivanishvili’s charitable fund has also allocated GEL 5 million (about USD 3 million) for reconstruction of houses’ roofs damaged by last year’s hailstorm and flooding. Read More» January 21st, 2013, Civil.ge Source: http://www.civil.ge/eng/article.php?id=25663
About 50 irrigation channels will be restored in the beginning of the season—Ministry of Agriculture According to press service of the Ministry of Agriculture, about 50 irrigation canals throughout Georgia will be fully restored this year, for the beginning of irrigation season. To this end, Ministry of Agriculture and United Company of Irrigation Systems, as the part of the program of drainage system rehabilitations, have purchased new drainage equipment for 3.6 million GEL (2.1 million USD)—says the message. Read More » January 22nd, 2013, NewsGeorgia.ru Source: http://newsgeorgia.ru/economy/20130122/215483162.html
2768 farmers affected by the disaster have received compensation The bank accounts of 2,768 beneficiaries affected by the disaster, received compensation. As the “Caucasus Press” noted, the list includes the victims of the five regions of Kakheti— Sagarejo, Gurjaani, Telavi and Kvareli, Lagodekhi. Read More» January 23rd, 2013, Apsny.ge Source: http://www.apsny.ge/2013/eco/1358975106.php
MFOs might be engaged in Projects Funded by Agricultural Fund, Experts predict the reduction of interest rates on credits after the launch of the Fund Will the One Billion Agriculture Fund become a rival to microfinance institutions? It is reported that the fund will issue agricultural loans through banks. Whether microfinance organizations will be involved in this process, is not known at this stage, however, according to the information we hold, microfinance organizations attended a working meeting at the Ministry of Agriculture together with banks. Read More» January 25th, 2013, Radio “Commersant”, FM 95,5 Source: http://commersant.ge/eng/index.php?id=4345
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International Assistance Georgian government has sent a letter to the World Bank requesting a cheap credit to finance agriculture We have sent a letter to the World Bank to request cheap credit—say Nodar Khaduri, Minister of Finance. As he noted, the government needs money to finance agriculture and irrigation systems. A member of the minority, an economist, Zurab Jafaridze responded to this announcement on Facebook. Read More» January 21st, 2013, News.ge Source: http://news.ge/ge/news/story/43355-mtavroba-msoflio-banks-iaf-kredits-soflismeurneobis-valdebulebebis-dasafinanseblad-stkhovs
Farmers will Have Better Access to Agricultural Inputs with US Government Support On January 22, 11:00 a.m., USAID’s Economic Prosperity Initiative (EPI) will host hazelnut growers, agricultural input supplier companies and testing laboratories at Shota Meskhia University to create mutual linkages and ease farmers’ access to finance. The primary objective of the event is to give agricultural input supplier companies and laboratories an opportunity to introduce their products, while the farmers can select necessary fertilizers and chemicals, based on which EPI plans to develop a low-cost financing scheme for farmers. This scheme will allow farmers to buy inputs and conduct soil testing they often cannot afford, and help increase hazelnut yields. Paying a small commission fee to a lending institution will allow the farmers to receive a guarantee letter, based on which they will get necessary fertilizers or test results on a consignment term from partner companies. The lending institution will reimburse the company, while the farmers begin paying back their interest-free loan once they earn revenues from harvest sales. Read More January 22nd, 2013, www.epigeorgia.com Source: http://www.epigeorgia.com/images/pressreleases/2013.01.22_atf_hazelnut_press%2 0release_eng.pdf
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Private Sector Banks’ Association Predicts Drop in Prices of Credits “The Association of Banks of Georgia” expects a drop in prices of bank credits in the current year. The President of the Association explains radio “Commersant” that the rates decreased 2—3% in 2012 that gives grounds to say that this process will continue in 2013. Read More» January 8th, 2013, Radio “Commersant”, FM 95,5 Source: http://www.commersant.ge/eng/index.php?id=4190
Hungarian companies to invest in agriculture of Georgia According to Hungarian Ambassador Sandor Szabo, Hungarian companies are ready to invest in agriculture in Georgia. He talked about this during the meeting with Minister of Agriculture of Georgia, David Kirvalidze. Read More» January 16th, 2013, Bizzone.info Source: http://bizzone.info/agriculture/2013/1358396117.php
Belgian and Dutch Companies Helping Georgia Become Export-Oriented Country The FINANCIAL—Chief negotiators from Georgia and EU plan to finalize negotiations on Deep and Comprehensive Free Trade Area (DCFTA) between the EU and Georgia by the end of 2013. This will definitely facilitate Georgia’s exports to EU Market. Georgian products, especially nuts, wine, meat and dairy products, should find their niche on the European market, so believe representatives of Georgian, Belgian and Dutch companies. Read More» January 21st, 2013, Finchannel.com Source: http://www.finchannel.com/Main_News/Geo/122374_Belgian_and_Dutch_Companies _Helping_Georgia_Become_Export-Oriented_Country/
Prepared by Business & Finance Consulting (BFC) www.bfconsulting.com In this bulletin, BFC provides extracts from articles that have been published by others and as a result cannot be held responsible for such content. The articles do not necessarily reflect the opinions of BFC, its staff, its associates or its partners. Copyright of articles is retained by their authors.