Georgian President delivers program  stimulating economy

Politics Materials 10 January 2009 11:13 (UTC +04:00)

Georgia, Tbilisi, Jan. 9/ Trend N. Kirtzkhalia/ The Georgian budget will allocate 1bln. lari to stimulate economy in March 2009, President of Georgia Mikhail Saakashvili said on Jan. 9 at governmental meeting.

He held the meeting without Georgian Premier Grigol Mgaloblishvili who is under treatment in Germany and will return Tbilisi on Jan. 11.

"We stimulate economy and create new jobs, for which totally $ 2.2bln will be allocated in 2009. Our second task is to stimulate private investments although investors die out as a class in the world today," said the President.

Tenders in the amount of 1bln. lari will start from the next week and all Georgian companies will be able to participate, Finance Minister Nika Gilauri said.

Public budget will stimulate the following branches of the country: construction of roads in the amount of 521mln lari, of this sum tender will be announced in the amount of 300 mln; 60 mln lari will be directed to regional funds and projects, municipal projects - 120mln lari, agriculture - 20 mln lari, Tbilisi projects - 120 mln lari, construction of houses for refugees - 120mln lari, within the framework of Millennium Program - 120mln lari, irrigative projects - 160mln.

Georgia's President believes that allocation of such huge sum also stimulates work of banks via which money will be transferred. "Today banks are afraid of providing credits loans, lending each other, but I think these are groundless apprehension, since our banking system endured crisis and our currency kept stability while most of our partners failed," said the President.

Banks won't decide to allocate loans at initial stages of projects' realization and the country will be ready to grant prepayment in the amount of 25% to companies winning the tender, Gilauri said.

So, 700mln lari of the sum allocated by the Public budget will remain in Georgia which will enable to create 25,000-30,000 new jobs, President said.  "The State initiative will support private investors as well, allocating 1bln lari, which will give an opportunity to create to 70,000 workplaces," he said.

Saakashvili called upon the ministers to resist crisis. "We have answers and we must be fully prepared. We don't have time to be ill but I see most are ill. The Prime Minister was ill of overstrain at work, and the speaker followed him. No one has right to be ill, all must be in good form," President said.