Gov't taking action to foster creation of local businesses in Georgia
The government of Georgia is announcing amendments to the state programme of 'Produce in Georgia' and a credit guarantee programme. Photo: Nino Alavidze/Agenda.ge.
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The government of Georgia is announcing amendments to the state programme of 'Produce in Georgia' and a credit guarantee programme to further help local companies start new businesses or develop already existing ones.
The Prime Minister of Georgia Giorgi Gakharia said at today's government meeting that the amendments made in the credit guarantee programme will help local companies maintain sustainability and liquidity.
The essential component of the initiative is to support the companies that are entering new markets and launching new projects in terms of a 90 per cent bank loan guarantee. As for the companies which already are using bank loans, they will be offered a 30 per cent loan guarantee. This is the fastest and the most effective solution for the companies to keep sustainability and liquidity", said Gakharia.
The credit guarantee programme came into force in April 2019 and aims to support small and medium sized businesses which operate in sectors where loans are restricted, or when they do not have enough property to secure a loan.
As for the Produce in Georgia state programme, the budget for providing micro grants to small businesses will be increased to 40 million GEL while the minimum grant amount will be increased from 20,000 to 30,000 GEL, said Gakharia.
It is also direct help to citizens who are ready to start a new business even in this uncertain situation, get involved in new projects, take some risk and, if successful, give jobs to others", said Gakharia.
In addition, Gakharia announced that people will not be forced to come to Tbilisi to receive information about Produce in Georgia and other programmes offered by the Ministry of Agriculture as now this service will be available at 100 community centres of the Ministry of Justice that function across Georgia.
Gakharia said that businesses will be able to receive this assistance in one month.
Georgian Economy Minister Natia Turnava held a presentation today on how the government is planning to help local businesses and especially small and medium-sized businesses reopen and overcome economic difficulties caused by the coronavirus pandemic.
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.
Georgian Prime Minister Giorgi Gakharia announced earlier today how the government intends to help businesses and agriculture during the COVID-19 crisis.
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