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Georgian government helps to pay loans of small hotels

Business Materials 24 August 2019 16:41 (UTC +04:00)

Baku, Azerbaijan, August 24

By Tamilla Mammadova – Trend:

The Georgian government is developing a new project with the aim of assisting owners of small and medium-sized hotels in the payment of bank loans, Trend reports with reference to the website of the Ministry of Economy and Sustainable Development of Georgia.

The initiative was presented by Minister of Economy and Sustainable Development of Georgia Natia Turnava and Prime Minister of Adjara Tornike Rizhvadze during their meeting with hotel owners in the resort town of Kobuleti.

The new project is called “Co-financing mechanism for small and family hotels to help the industry.” According to the Ministry of Economy, the initiative is one of the points of the government plan aimed at supporting entrepreneurs whose businesses suffered after the events due to Russian sanctions followed by a decrease in the flow of tourists.

The project will be launched on September 1 of this year and implemented by the Produce in Georgia agency. The agency will finance monthly interest on loans accrued from August 1 for the next six months.

The authorities will finance the monthly interest rate on loans taken in national currency by 80 percent, and on loans in foreign currency - by 70 percent.

The government will help the entrepreneurs, which took loans from banks until June 30, 2019 in order to build, equip and repair hotels or expand their business. As indicated, the number of rooms in their hotels should not exceed 20, but not be less than four.

The loan amount must not exceed 300,000 lari. As for the loans in foreign currency, the mechanism limits their maximum size to $100,000 and 80,000 euros.

(1 USD = 2.92 GEL on August 24)

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