Over 15 enterprises use credit guarantee scheme under Produce in Georgia program
BAKU, Azerbaijan, August 7
By Tamilla Mammadova – Trend:
Seventeen enterprises have already used the credit guarantee scheme under the Produce in Georgia program, including building materials' enterprise, healthcare-related business units, hotels and restaurants, clothing and food producers, and warehousing sector, Trend reports with reference to Georgian media.
The volume of the loan guarantee scheme is 330 million lari ($110 million), with the help of which it will be possible to secure loan portfolios in the amount of 2.1 billion lari ($700 million).
Under the credit guarantee scheme, an entrepreneur will be able to take out a loan in the amount between 50,000 lari (almost $17,000) and 5 million lari ($1.7 million).
Furthermore, the program of subsidizing mortgage loans has already been used by 82 citizens who want to buy an apartment by the end of the year. Subsidized mortgage loans are part of the government program to help the construction sector.
To solve the problem of reducing real estate sales, the authorities decided to simplify the process of purchasing apartments for citizens. For those wishing to improve their living conditions and purchase apartments by the end of 2020, the government will subsidize the interest rate on mortgage loans. A subsidy of 4 percent for 5 years will apply to all loan agreements up to 200,000 lari ($65,275).
According to the plan, the government will allocate 70 million lari ($22.8 million) to subsidize the mortgage interest rate; 14 million lari ($4.5 million) for state guarantees for a portfolio of mortgage loans.
The program will operate on contracts concluded before the end of the year. Five out of 15 banks licensed in Georgia participate in the program. Apartments under the new conditions are offered by about 70 construction companies.
Follow the author on Twitter: @Mila61979356