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Banks not Issuing Loans to Small Farmers

Published: August 16, 2013 | 8:32 am
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Why are banks not issuing long term loans to small farmers? In spite of the State Cheap Agricultural Loans program being in place, some farmers have complained that they are still unable to obtain loans. Tetritskaro resident Lia Shalvashvili has contacted TV3 in this regard. She asked for a loan of 30 000 GEL to expand her 50 m2 farm and feed the cattle. She first contacted the Bank of Georgia, whom she had been banking with. Representatives from the bank viewed the farm 4 months later and refused to issue the loan on the grounds that certain criteria had not been met with regards to the number of cattle and the absence of hay. Ms. Shalvashvili was rejected by other banks, too, on similar grounds.
According to Ms. Shalvashvili, she had never had any problems with the banks before. On this occasion, she was forced to turn to microfinance company BIG, which issued her with an 8000 GEL loan, on which she has to pay high interest rates. According to her, numerous other farmers have faced the same problems as her.

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