Small Georgian businesses to benefit from renewed credit guarantee programme

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. 

Now the goal is to make this programme adjustable to the government's coronavirus anti-crisis economic plan.

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Georgian Economy Minister Natia Turnava held an online meeting today with the heads of  banks operating in Georgia and told them that 300 million GEL (about $93.31m/€84.95m) will be allocated to implement the credit guarantee programme to help the businesses faster get out of the crisis caused by the coronavirus pandemic.

Georgian Economy Minister Natia Turnava held an online meeting today with the heads of  banks operating in Georgia. Photo: Ministry of Economy.

Access to finance is a big problem today. Especially small and medium-sized businesses find it difficult to make a turnover. Consequently, employees in such companies are at risk. The goal of any of our programmes is ultimately to keep jobs for employees. The renewed credit guarantee programme will meet all of these challenges: small and medium-sized companies will have the opportunity to restructure bank loans, as well as attract capital to finance their needs, including employee remuneration", said Turnava.

She said that "we are ready" to submit an act to the government "these days", according to which the renewed credit-guarantee programme will come into force and will be reflected in the anti-crisis budget.