More loans, more assistance: doing business in Georgia becomes easier

2020/06/89849-1593075551.jpg
Read: 1554     14:00     25 Июнь 2020    

If earlier the project helped enterprises from 100 industries, now this number is almost doubled. One of the most successful projects of the government of Georgia to help businesses – "Produce in Georgia" - is expanding in order to strengthen support for local entrepreneurs, the presentation of the updated program was told.

The government program "Produce in Georgia" was created in the summer of 2014 and is aimed at stimulating local production in the country. In April 2017, the Agency of the same name was created, which United all state programs aimed at promoting the business sector and economic development of the country. The Agency's programmes: subsidized loans and collateral that cover more than 200 activities, and microgrants that cover more than 300 activities.

Co-financing of loans

The expanded program will Finance enterprises that produce plastics, building materials, mineral water, wood, leather, rebar, poultry and animal feed, as well as laboratories. The list of funding also includes hotels, balneological resorts, adventure parks and various tourist services.

The credit limit set for participation in the program was reduced to 50 thousand lari (almost 17 thousand dollars), and the maximum amount increased to 10 million lari (3.3 million dollars).

In the case of a local, non-international brand, the maximum loan amount is 4 million lari ($1.3 million), and with an international brand and various tourist services – 10 million lari.

The state's participation period has increased from 24 to 36 months. The percentage of state participation has also increased. For example, in the case of a debt of 13%, 1.5% will be covered by the state, which will free up the company's funds for doing business.

Credit guarantee scheme

The scale of the credit guarantee scheme is changing, when the state acts as a guarantor of the loan to the Bank. The program budget increased from 20 to 330 million lari (from 6.7 to 110 million dollars). This will help to ensure that the credit portfolios in the amount of 2.1 billion lari ($700 million).

Under the program, the guarantee for each new loan issued by a commercial Bank, instead of no more than 70% of the loan amount, will be 90%.

Under the credit guarantee scheme, an entrepreneur will be able to take out a loan in the amount of at least 50 thousand lari and no more than 5 million lari ($1.7 million). The state will also provide 30% collateral in case of loan restructuring.

Microgrants

The budget of one of the most successful programs to support micro and small enterprises has increased from 10 to 40 million lari, and the upper limit of the grant program focused on regional development has increased from 20 to 30 thousand lari.

The amount of participation of entrepreneurs who won the program will be 10% instead of 20%. If an entrepreneur starts a business in a mountainous region, they will pay only 5%.

The goal of this solution is to maximize the decentralization of businesses in the regions. Now entrepreneurs from Tbilisi can also participate in the program. Women entrepreneurs, people with disabilities, and other vulnerable groups are given priority in participating in programs.

The success of the "Produce in Georgia"

The Agency works in three main areas: business development, export support and investment attraction. Within the framework of the program, the "Produce in Georgia" Agency has already supported 359 production projects, which resulted in more than 13 thousand jobs in the country. In particular, 85 projects were funded over the past year, which is 31% more than in 2018. Private sector investment also increased by 19%.

In addition, the government supported 136 hotel projects, which created more than 3,3 thousand new jobs. In 2019, 59 hotels received support, which is 48% more than in 2018.

In 2019, the Agency's strategy for attracting investment was approved. With the Agency's assistance, five new investment projects were launched in 2019, which gave the country $ 83 million in foreign direct investment and created 850 new jobs.

The Agency plans to continue the successful implementation of the program, attract more and more businessmen, making it easier for them to get co-financing in various projects.

 

Sputnik-georgia.ru





Tags:



More loans, more assistance: doing business in Georgia becomes easier

2020/06/89849-1593075551.jpg
Read: 1555     14:00     25 Июнь 2020    

If earlier the project helped enterprises from 100 industries, now this number is almost doubled. One of the most successful projects of the government of Georgia to help businesses – "Produce in Georgia" - is expanding in order to strengthen support for local entrepreneurs, the presentation of the updated program was told.

The government program "Produce in Georgia" was created in the summer of 2014 and is aimed at stimulating local production in the country. In April 2017, the Agency of the same name was created, which United all state programs aimed at promoting the business sector and economic development of the country. The Agency's programmes: subsidized loans and collateral that cover more than 200 activities, and microgrants that cover more than 300 activities.

Co-financing of loans

The expanded program will Finance enterprises that produce plastics, building materials, mineral water, wood, leather, rebar, poultry and animal feed, as well as laboratories. The list of funding also includes hotels, balneological resorts, adventure parks and various tourist services.

The credit limit set for participation in the program was reduced to 50 thousand lari (almost 17 thousand dollars), and the maximum amount increased to 10 million lari (3.3 million dollars).

In the case of a local, non-international brand, the maximum loan amount is 4 million lari ($1.3 million), and with an international brand and various tourist services – 10 million lari.

The state's participation period has increased from 24 to 36 months. The percentage of state participation has also increased. For example, in the case of a debt of 13%, 1.5% will be covered by the state, which will free up the company's funds for doing business.

Credit guarantee scheme

The scale of the credit guarantee scheme is changing, when the state acts as a guarantor of the loan to the Bank. The program budget increased from 20 to 330 million lari (from 6.7 to 110 million dollars). This will help to ensure that the credit portfolios in the amount of 2.1 billion lari ($700 million).

Under the program, the guarantee for each new loan issued by a commercial Bank, instead of no more than 70% of the loan amount, will be 90%.

Under the credit guarantee scheme, an entrepreneur will be able to take out a loan in the amount of at least 50 thousand lari and no more than 5 million lari ($1.7 million). The state will also provide 30% collateral in case of loan restructuring.

Microgrants

The budget of one of the most successful programs to support micro and small enterprises has increased from 10 to 40 million lari, and the upper limit of the grant program focused on regional development has increased from 20 to 30 thousand lari.

The amount of participation of entrepreneurs who won the program will be 10% instead of 20%. If an entrepreneur starts a business in a mountainous region, they will pay only 5%.

The goal of this solution is to maximize the decentralization of businesses in the regions. Now entrepreneurs from Tbilisi can also participate in the program. Women entrepreneurs, people with disabilities, and other vulnerable groups are given priority in participating in programs.

The success of the "Produce in Georgia"

The Agency works in three main areas: business development, export support and investment attraction. Within the framework of the program, the "Produce in Georgia" Agency has already supported 359 production projects, which resulted in more than 13 thousand jobs in the country. In particular, 85 projects were funded over the past year, which is 31% more than in 2018. Private sector investment also increased by 19%.

In addition, the government supported 136 hotel projects, which created more than 3,3 thousand new jobs. In 2019, 59 hotels received support, which is 48% more than in 2018.

In 2019, the Agency's strategy for attracting investment was approved. With the Agency's assistance, five new investment projects were launched in 2019, which gave the country $ 83 million in foreign direct investment and created 850 new jobs.

The Agency plans to continue the successful implementation of the program, attract more and more businessmen, making it easier for them to get co-financing in various projects.

 

Sputnik-georgia.ru





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