New credit guarantee programme launches today for SMEs in Georgia
The Economy Minister Giorgi Kobulia and his team started meeting with local businesses to introduce them new credit guarantee programme. Photo: Ministry of Economy.
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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 is coming into force today.
The goal of the programme is to 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.
This year 20 million GEL has been allocated from the state budget and we hope the banks will issue loans worth about 250 million GEL for small and medium sized businesses”, said Economy Minister Giorgi Kobulia.
Within the credit guarantee programme up to 70% of the principal amount of the individual loan will be reimbursed within the limit of 15% of the total portfolio of loans issued within the programme.
Also credit guarantees will be issued only on loans taken in the Georgian national currency of the lari. The maximum period of the guarantees will be 10 years.
The minimum loan amount is 50,000 GEL (about $18,587/€16,544) and the maximum amount is 2,000,000 GEL (about $743,494/€661,769).
The beneficiary of the credit-warranty programme may be all the entrepreneurs which last three years’ average turnover does not exceed over 20,000,000 GEL (about $7.43m/€6.62m) and loan liabilities is not more than 8,000,000 GEL (about $2.97m/€2.65m).
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.
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The International Monetary Fund (IMF) will team up with Georgia’s Ministry of Economy to create a credit guarantee fund for Georgia. The meeting was held yesterday during the Georgian governmental delegation’s visit to the US.
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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.