Georgia working on new reform for development of small and medium business
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Georgia’s Ministry of Economy, the Ministry of Finance, Parliament, the National Bank, the Partnership Fund, the local banking sector and a Turkish delegation are teaming up to develop new initiatives for promoting small and medium-size business and make access to finances easier for them.
Representatives of the Turkish delegation talked about their experience in economic development and access to finance.
The Turkish Credit Guarantee Fund offered a credit guarantee mechanism for small and medium-size businesses. This mechanism successfully functionins in Turkey which is reflected on by employment and the economic growth of the country.
"We are starting a new reform for the development of small and medium-size business and access to finances for this segment”, Georgia’s Economy Minister Dimitry Kumsishvili said.
"The credit guarantee mechanism is a guarantee fund that serves as a guarantor for commercial banks, small and medium-size businesses. We are deeply convinced that this reform will give even more stimulus to the development of small and medium-size business in Georgia and thus create new jobs”, he added.
Georgia is starting a reform for the provision of start-up capital to support entrepreneurs turn their new business ideas into reality.
The Government of Georgia is introducing three new tax initiatives that aim to support businesses in Georgia, improve the business environment and increase the share of small and medium sized business in the country’s economy. Recently, Georgia’s Finance Ministry also introduced new tax breaks which will apply to small businesses in Georgia.
The Georgian Ministry of Finance is introducing new tax breaks to Georgia’s business society and especially to those who are based in the regions of the country.
The Government of Georgia is launching a second wave of small business assistance efforts building on the successful programs such as ‘Produce in Georgia’, agriculture programs like ‘Plant the Future’ and others. Georgia’s Finance Minister Mamuka Bakhtadze initiated a new legislative package at today’s government meeting that concerns tax breaks for small businesses.
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).
European Investment Bank (EIB) is allocating €65 million in total to support Georgian small and medium size businesses.
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.