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German Company to Participate in Agro-credit Program

German Company to Participate in Agro-credit Program

German company CAPAROL will participate in the preferential agro-credit program. According to the company’s Director David Shengelia, the program envisages the allocation of loans for construction materials. 

Shengelia says that due to high interest rates in the country’s banking system, the company has not taken any loan in Georgia. He notes when the company needs funds, it  always gets a loan from Germany.

“We don’t cooperate with local banks, because we are 100 percent German firm. Therefore, when we need something, we get it from Germany. There are much lower interest rates there, with an annualmaximum of  1.5 percent.

“We were interested in the preferential agro-credit program  because it offers a low percent, otherwise we would not take credit in Georgia, “- Shengelia notes. According to him, getting a loan is much harder in Germany than in Georgia in terms of the bureaucratic mechanisms.

Shengelia 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.

CAPAROL has been operating in Georgia for 10 years. In January 2005, a new venture of Caparol group of companies – CAPAROL Georgia – was opened in Tbilisi.