Enterprise Georgia to help Georgian hotel industry overcome financial problems due to coronavirus

Enterprise Georgia is starting a new programme today to cofinance family-owned, small and medium-size hotels in Georgia. 

The programme will seek to alleviate financial problems in the tourism industry due to the spread of the coronavirus.

The programme aims to support family-owned, medium and small-size hotels to continue operating in the market by alleviating their financial burden, to which end, over the next six months Enterprise Georgia will co-finance the servicing of loans borrowed by these hotels from commercial banks.

What are the conditions for participating in the programme?

To participate in the programme, hotel loans must have been taken out before March 1, 2020, and should have been taken for the purpose of building, expanding or reconstructing the hotel.

Also, hotels must have in between four - 50 rooms.

Enterprise Georgia will co-finance no more than 80 per cent of  the interest rate on loans denominated in the national currency, while it will finance no more than 70 per cent in case of the loans denominated in foreign currency, particularly in the US dollar or the euro.

The maximum amount of loans that will be eligible is 1,000,000 GEL ($313,676/€292,141) for loans denominated in the Georgian lari, while the maximum amount is $300,000 or €250,000 in case of loans denominated in foreign currency.