TBC Bank’s Agro Loans Support Farmers, Cooperatives

Georgia’s farmers need access to financing that fits their budget in order to develop and thrive in the modern economy.

TBC Bank understands the challenges farmers – and agro businesses – face in today’s market, which is why the Bank has developed a special type of inexpensive loans for agriculture cooperatives.

Nika Kurdiani, a deputy CEO at TBC Bank, noted that by financing cooperatives, TBC Bank is providing affordable financing that will help farmers develop and grow produce and goods that are competitive on the local market – and abroad.

“We are proud that we are the first to establish a precedent of financing cooperatives and we think that it will greatly contribute to the development of agriculture in Georgia,” he said. “That’s why we are ready to cooperate with cooperatives and provide them with cheap loans to enable them create competitive and high quality products.”

TBC Bank’s agro loans are available for cooperatives in all fields of agriculture, from crops to fish farms.

The loan can be used for financing working capital, as well as fixed assets. Under the terms of the state subsidy program, the annual interest rate on working capital will be 6-7%. Annual interest for financing fixed assets is set at 3-4%.

For agro businesses, this system has two major benefits: First, the responsibility for the loan is distributed equally among all the members of the cooperative, which reduces risk; in addition, this is the most affordable agro loan on the market and, since it is partially subsidized by the state, it is even less expensive.

For this loan project, the government’s Agricultural Cooperatives Development Agency is cooperating with TBC Bank to collect and exchange valuable information from the agriculture sector.

“A developed agriculture sector can be an engine to drive economic growth and have a very positive social impact,” noted Giorgi Mishelidze, the chairman of ACDA.

“Agro loans for cooperatives is an in important initiative, which will greatly contribute to villages’ economic and social development . We believe this program will raise the profitability of production and will make it more productive.”