Gov’t approves 25 projects within ‘Produce in Georgia’ scheme

46 million GEL will be invested into the country’s business sector within ‘Produce in Georgia’ scheme., 01 Oct 2014 - 23:15, Tbilisi,Georgia

The Government of Georgia has approved 25 new projects within the ‘Produce in Georgia' scheme, in which 46 million GEL ($27 million USD) will be invested into the country’s business sector to stimulate domestic production and develop production-oriented industries.

Some of the new businesses are agricultural and industrial enterprises, including in the greenhouse industry, a cattle-breeding facility, a poultry-raising factory, a second-hand paper production mill as well as construction materials production and a pharmacy.

Deputy Minister of Economy and Sustainable Development Keti Bochorishvili said under the agreement, the new enterprises should be built within the next two years.

"These projects will bring new jobs, additional income and welfare for Georgian people,” Bochorishvili said after meeting with Economic Council members, led by the Prime Minister Irakli Garibashvili.

Initially, the ‘Produce in Georgia’ program supported any entrepreneur who decided to create a new industrial or agriculture venture. But later the rules changed and existing businesses were eligible to receive the Governmental support to expand their businesses.

In this instance, the Government offered to support existing entrepreneurs in three ways: financially, through infrastructure or by offering the business a consulting service.

The ‘Produce in Georgia’ program, initiated by the PM Garibashvili, aimed to recover the country’s production industry and improve Georgia’s economic future by supporting smaller manufacturing and agricultural projects.

"The interest from businesses was so high so the Government decided to give the opportunity to current businesses to strengthen and expand their enterprises and use the preferential loans from banks,” Bochorishvili said.

In particular, established businesses will be granted preferential loans from local commercial banks with low interest rates (11- 13 percent), with the Government covering 10 percent of the interest cost. The credit line for those involved in industrial production enterprises ranged from $150,000 to $2 million US). The preferential period for credit will be two years and the state will be the collateral.

The Governmental project ‘Produce in Georgia’ launched on June 1 this year.