Business
Posted: 1 month ago

MInister of Economy Introduced Business Supporting Programs within Anti-Crisis Economic Plan

Natia Turnava, the Minister of Economy and Sustainable Development, made a presentation on the business supporting programs within the frames of the anti-crisis economic plan.

The Minister presented detailed information about the programs elaborated by the Ministry and its structural subdivisions in accordance with the Government’s anti-crisis economic plan. Turnava focused on the economic forecasts for Georgia and the world preconditioned by the new Coronavirus pandemic and the ways and the means to overcome the crisis, including the Government-funded stimulus programs.

The anti-crisis economic plan – Supporting the Business, envisages the renewed programs within the Enterprise Georgia state program, which include such decisions as tax concessions of maintaining the workplace, property and income tax deferral for tourism-related business entities; subsidized loans for family, small and medium hotel businesses; loan restructuring to all legal persons, basic food products price increase insurance, rural development programs, the format of the exercise, the automatic VAT refund mechanism, etc.

According to the Minister, in order to ease the situation caused by the pandemic, the types of activities for the loan and leasing subsidy program have increased and significant changes have been made. In particular, the loan limit set for participation in the program has been reduced to 50000 GEL, which gives more businesses the opportunity to benefit from the loan co-financing component. Also, the types of activities and the terms of co-financing have increased from 24 to 36 months. Due to existing reality, the interest rate has also been changed and the refinancing rate now is + 3%. (Program link - https://bit.ly/2Srv4ux).

The scale of the credit guarantee scheme has been also changed and the program budget has been increased from 20 to 300 million GEL, through which a loan portfolio of 2,1 billion GEL will be provided. Under the program, a credit guarantee will be issued for each loan issued by a commercial bank in the amount of 90% instead of the principal amount of the loan. In addition, 30% will be provided by the state in case of restructured loan. Within the framework of the credit-guarantee scheme, the entrepreneur will be able to take a loan in the amount of 50 thousand to 5 million GEL. (Program link - https://bit.ly/3fjy06u).

Natia Turnava noted that the budget of the “Micro and Small Entrepreneurship Support” program has been increased from 10 to 40 million GEL and the upper limit of the grants for regional development-oriented grant program has become 30000 GEL. Priority is given to women entrepreneurs, people with disabilities and other vulnerable groups. The amount of co-participation of the entrepreneurs who won the program is now 10% instead of 20%. (Program link - https://bit.ly/2yY27zy).

The Minister also focused on the post-crisis plan. According to Turnava, the main direction of the post-crisis plan is the development of the local production. “We clearly see how important it is to have your own resources developed to maximize your market and needs in the country. Our priority is and will be the promotion the Georgian production,” – Natia Turnava said.