Small Georgian businesses to benefit from new credit guarantee programme
Georgian PM Bakhtadze said that the EU helped the government create the credit guarantee programme. Photo: Gov't of Georgia.
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Small and medium sized businesses in Georgia will have better access to finances thanks to a new credit guarantee programme that will be launch in the first quarter of 2019, Georgian Prime Minister Mamuka Bakhtadze announced today.
This is an innovative mechanism for our economy. I have very high expectations that it will help us to increase the share of small and medium business in our economy… The most painful challenge for us is poverty and overcoming poverty is possible only increasing the share of small and medium sized business in economy”, said Bakhtadze.
He said that the credit guarantee programme will support small and medium sized businesses which operate in sectors where loan issuance is restricted, or do not have enough property for securing a loan.
Bakhtadze said that the European Union helped the government create the credit guarantee programme.
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The average monthly salary for a person employed in the business sector in the third quarter (Q3) of 2018 was 1,186.7 GEL. This was an increase of 43.2 GEL year-on-year (y/y), said the National Statistic Office of Georgia (Geostat).
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13.3% of enterprises in Georgia introduced new or significantly improved goods on the market, while the share of enterprises that introduced new or significantly improved service in 2017 was 14%.
Small business revenues have doubled in the third quarter of 2018, increasing by almost 100%, says Georgian Prime Minister Mamuka Bakhtadze.
"A tax regime for small businesses, which is unique throughout the world, is already in force”, says Prime Minister of Georgia Mamuka Bakhtadze. Per the new tax initiative that came into play on July 1, the turnover tax for small entrepreneurs will be reduced five times. This far-reaching reform applies to almost 100 percent of individual entrepreneurs.
Small and medium sized businesses in Georgia will have better access to finances thanks to a new credit guarantee programme that is coming into force today.
The priority of the Georgian government is to develop small and medium size businesses in order to strengthen the private sector, create jobs, promote innovation, increase exports and create modern entrepreneurial culture, said Minister of Economy Natia Turnava at the seminar ‘From Access to Finance towards Inclusive Growth’ organized by the European Investment Bank (EIB).
The Georgian Ministry of Economy is working on renewing a credit guarantee programme that came into force in April 2019 and aims to support small and medium sized businesses which operate in sectors where loan issuance is restricted, or do not have enough property to secure a loan.