The Chair, Otar Danelia introduced the Action Plan envisaging new legislative initiatives, oversight activity and thematic issues under the Rules of Procedure.
The Committee discussed the Agreement on Exemption of the Financial Agreement (Georgian Agrarian Production/Recycling/Realization Chain) between Georgia and European Investment Bank, introduced by the Deputy Finance Minister, Giorgi Kakauridze.
The Financial Agreement was signed in 2016 envisaging allocation of 100 ml EURO by EIB to Georgia. Despite the efforts by the Agrarian Ministry, the Commercial Banks failed to assume the monetary risk, as a result, the interest of the loans for farmers in EURO constituted 8-9%, which was inexpedient and the Government annulled the loan.
After the negotiations with the EIB, now the new negotiations are on agenda to fund the melioration infrastructure development project. The sum will be consumed on reservoirs.
“In fact, agriculture is not the field capable to being developed with 8-9% loan in EURO. Unfortunately, the interests are quite high and shall be minimized to ensure more solidary responsibility. In general, we need aid to develop the production chain”, - O. Danelia noted.
As to inexpediency of the loan, it was elucidated that the state does no longer apply for the loan and at the same time, the consultations are held with the EIB. In 2018, EIB and Georgia signed the Exemption Agreement annulling the loan.
The Agreement needs to be ratified by the Parliament.