Gov’t to Finance International Corporations Bringing Production to Georgia

The Minister of Economy and Sustainable Development Natia Turnava announced while participating in the video conference organized by ISET, concerning the economic steps planned by Georgia in response to COVID-19, that the government plans to implement FDI reallocation grant program, as a result of which the state will provide financial assistance to the international companies that will move their production to Georgia and will offer them a risk co-financing system.

“Government will implement FDI reallocation grant program. We do expect a lot of new plans that are coming from global companies and corporations, who are seeking to relocate the existing businesses. We will help them finance workforce learning, salaries, infrastructural costs, and some risk insurance instruments will be provided. Georgia has been known before the crisis as one of the highly attractive platforms for doing business and we will elaborate more on that position,” the Minister noted.

Additional details about the project are expected to be announced on April 24, when the government will present a draft anti-crisis plan aimed at stimulating the country’s economy affected by the coronavirus pandemic.

In addition, Natia Turnava also made a statement about the expansion of the credit guarantee system.

"We are working on a draft amendment that will allow all state business support programs to be focused on improving the situation. Loan co-financing programs for small and medium-sized businesses, credit guarantee programs and other schemes will undergo redesign process and become more targeted. This is to help businesses deliver short-term liquidity (a company's ability to collect enough short-term assets to pay short-term liabilities as they come due). We will also help local producers to develop.

Particular attention will be paid, among other stimulating activities, to the credit guarantee scheme, in order to finance small and medium-sized businesses that have been affected by the coronavirus pandemic and that have a high potential for rapid development. This system also applies to the restructuring of loans and loans to replenish working capital. Also, the limits by which the state will guarantee loans will be changed and revised," she elaborated.

Watch the video here

By Ana Dumbadze