BAKU, Azerbaijan, May 1
By Tamilla Mammadova - Trend:
Georgian Economy Minister Natia Turnava held a presentation on how the government is planning to help local businesses reopen and overcome economic difficulties caused by the coronavirus pandemic on May 1, Trend reports citing Georgian media.
The announcement comes one week after Georgian Prime Minister Giorgi Gakharia presented a plan to gradually open the economy over the next three months, outlining six phases designed to slowly get businesses up and running again.
Turnava said that as part of the anti-crisis plan, programs designed for small and medium-sized businesses will be extended.
According to the minister, Credit and Leasing Subsidy Program will be extended. The co-financing of subsidizing of credit and leasing components will be extended for one year and will equal 36 months (three years) instead of 24 (two years).
Co-financing will be increased by three percent. The limit will be decreased from 150,000 lari ($46,932) to 40,000 lari ($12,515). The types of activities eligible for co-financing will be increased from 104 to 211. About 300 small and medium-size businesses will be able to use this program.
"The budget of the Credit Guarantee Program is increasing from 20 million lari [$6.2 million] to 300 million lari [$93.8 million] and will enable small and medium-sized business to have access to loans of 2.1 billion lari [$657 million] from the commercial banks operating in Georgia," she said.
The state will co-finance 90 percent of the principal amount of the loan while earlier it was 70 percent. If before the state was subsidizing only new loans, now the existing loans also will be subsidized. The upper limit of the amount of the loan will be increased from 2 million lari ($625,760) to 5 million lari ($1.5 million). The program will benefit small companies which annual turnover does not exceed over 20 million lari ($6.2 million).
The budget of Micro Grants Program is also increasing and will total 40 million lari ($12.5 million) instead of 10 million lari ($3.1 million).
Turnava said that according to the most conservative forecasts, this year will end at least with -4 percent growth. However, she said that in 2021, the Georgian economy will likely grow by 4 percent.
Turnava also spoke about the post-crisis plan and outlined several points including the development of local manufacturing, persuading international businesses to relocate their manufacturing activities to Georgia and creating an anti-crisis plan for the tourism industry.
Turnava said that the government will also present a post-crisis plan soon.
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