BAKU, Azerbaijan, Nov. 13
By Tamilla Mammadova – Trend:
Georgia’s export support agency "Produce in Georgia" has announced the start of the forth stream of applications for the 'Co-financing Mechanism for Supporting Family-owned, Small and Medium-size Hotel Industries' to help industry players tackle the economic challenges caused by COVID-19, Trend reports via Georgian media.
The project was launched as part of the Anti-Crisis Economic Action Plan unveiled by the government of Georgia in April and offers interest subsidies and co-financing of annual interest rates on hotel business bank loans.
As part of the project Produce in Georgian agency will co-finance not more than 80 percent of the annual interest rate on loans issued in the Georgian national currency and 70 percent issued in foreign currency (only euro and USD) to family-owned, small and medium-sized hotels from March 1, 2020 for the next 12 months.
The maximum loan amount under the co-financing mechanism is:
5 million lari ($1.5 million) - in case of a loan issued in the national currency
$1.75 million - in case of a loan issued in the USD
1.65 million euros - in case of a loan issued in euro
A loan must be issued by a commercial bank in the period before March 1, 2021.
Not less than 80 percent of the total loan amount must be disbursed for the purpose of purchasing / building / expanding / equipping / repairing / reconstructing / purchasing real estate (property) for the hotel.
As part of the changes made to the state program of Produce in Georgia, which is also implemented by the Produce in Georgia agency, event companies and farmers who are engaged in growing grapes, citrus and other tropical fruit varieties will be involved in a credit guarantee mechanism that will enable them to get subsidized bank loans for 12 months.
In August this year Produce in Georgia announced that it would support six new economic activities to tackle the economic challenges caused by COVID-19.
These activities are: creation of computer games, hospital activities, general medical practice activities, specialized medical practice activities, dental practice activities, purchase and leasing of film production equipment.
---
Follow the author on Twitter: @Mila61979356