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State Development Corporation to be Established in Georgia

“Commersant”  reports that the German Development Bank (KFW) will assist the Georgian government in establishing the  State Development Corporation.
According to  the parliamentary majority  leader David Saganelidze, KFW will provide about 350 000 Euro for a research about the prospects for the creation of such a structure in Georgia, and the findings will be presented to the government.

“The study should reveal which  sectors of the Georgian economy need  the potential of the corporation, which branches are most in need of public investment. Mostly, we are talking about large and long-term projects which are not subjects of interest of commercial banks, “- the MP notes.

According to him, the government decided to consult with the international financial institutions and ultimately to create a corporation, which will not require reforms and changes in the future.

“Negotiations with German partners are  conducted by Economy Minister Giorgi Kvirikashvili. We want to conduct the study as soon as possible, although there are no specific dates. It is expected that it will take  2-3 months. The results will help us to correctly identify the priorities to form an effective structure and direct finances to those areas which need them  most, “- David Saganelidze adds.

The idea of creating the  State Development Corporation belongs to  the former Prime Minister Bidzina Ivanishvili. Originally it was planned to create a Development Bank, then it was decided to form a Development Corporation.

It will be created on the basis of the  Partnership Fund (PF), which manages state assets of the country.