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German Company Advises Georgian Gov’t to Promote Start-ups

Some companies, including the German “CAPAROL”, talks about the difficulties  related to obtaining the loan in the frames of the preferential agro-credit program.In particular, the company’s representative evaluates the negative sides of the preferential agro-credit program  and declares that a collateral for a loan is the negative side of the  program.

“It would be nice if programs for start-ups were created ,” – Director  of “Caparol” David Shengelia notes.

An owner of “Abasheli Farmer Ltd” Pridon Gigineishvili asks  to simplify the procedure for obtaining a loan. He says that banks ask too much collateral for loans from farmers, as a result, if a farmer does not have the property to be mortgaged, a bank does not give loans. Gigineishvili adds that  the preferential agro-credit program is a step forward in development of agriculture, but it would be nice if these barriers were simplified.

Farmers urge government to simplify  delivery of credits. However,  a representative of the Agricultural Project Management Agency Nikoloz Lomidze says  that a bank is a commercial structure and to issue a loan without collateral will be incredible. Accordingly, this portion of the program is not subject to review.