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Georgia takes steps to foster development of local businesses

Business Materials 4 June 2020 20:32 (UTC +04:00)

BAKU, Azerbaijan, June 4

By Tamilla Mammadova - Trend:

The government of Georgia is announcing amendments to the state program of "Produce in Georgia" and a credit guarantee program, said Prime Minister of Georgia Giorgi Gakharia, Trend reports citing Georgian media.

He made the remark at a government meeting on June 4.

As reported, these steps are being taken to further help local companies start new businesses or develop already existing ones.

"The amendments made in the credit guarantee program will help local companies maintain sustainability and liquidity," said Gakharia.

According to him, 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-percent bank loan guarantee.

"As for the companies which already are using bank loans, they will be offered a 30-percent loan guarantee. This is the fastest and the most effective solution for the companies to keep sustainability and liquidity", said Gakharia.

Meanwhile, the credit guarantee program which came into force in April 2019 aims to support small and medium-sized businesses in the sectors where loans are restricted, or when they do not have enough property to secure a loan.

As for the "Produce in Georgia" state program, the budget for providing micro grants to small businesses will be increased to 40 million lari ($13.04 million) while the minimum grant amount will be increased from 20,000 lari ($6,520) to 30,000 lari ($9,780).

Gakharia noted, it also directs to help citizens who are ready to start a new business even in this uncertain situation and get involved in new projects.

"People will not have to come to Tbilisi to receive information about 'Produce in Georgia' and other programs offered by the Ministry of Agriculture as now this service will be available at 100 community centers of the Ministry of Justice that function across Georgia," the prime minister noted.

Gakharia said that businesses will be able to receive the assistance within one month.

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