Irakli Garibashvili, Prime Minister of Georgia held and led an Executive Government Meeting at the Government Administration today to discuss 19 agenda items suggested for the Cabinet of Ministers.
The Government of Georgia has ruled to implement a pilot program for the Integrated Rural Development in four regions of the country – Kakheti, Racha-Lechkhumi and Kvemo Svaneti, Imereti and Guria.
Incorporation of new enterprises will be financed with an aim of facilitating small and medium businesses in targeted regions of the country, along with their extension and provision of new equipment and machinery. Funding includes full coverage of the interest rate borne by loans issued by commercial banks operating in Georgia for 24 months under the program, as well as a grant financing of up to 30% of the loan amount. Total value of the project submitted by potential beneficiaries from targeted regions (amount of the loan to be disbursed) should include at least 300 000 GEL or maximum 1 MLN GEL. The program is implemented by the Rural Development Agency.
In addition, the Government of Georgia has decided to make several significant adjustments to the credit guarantee scheme, facilitation of industrial, micro and small enterprises, hotel industry and export promotion within the scope of the state program branded as Enterprise Georgia. Priority will be given to business start-ups/extensions by persons with disabilities within the scope of grant financing for micro and small enterprises. Other priority areas within this segment include business start-ups/extensions by young entrepreneurs. Pilot regions – Imereti, Kakheti, Guria, Racha-Lechkhumi, Kvemo Svaneti – will be defined towards this end with the support of the EU, and the volume of grants to be issued to beneficiaries will be increased. 40,000 GEL will be paid out in pilot regions, and 30,000 GEL in all the others. The program branded as Enterprise Georgia will be augmented with a technical assistance (TA) component for export promotion, covering three directions: licensing/certification of goods, with funding of 20,000 GEL; branding and packaging of goods, with funding of 20,000 GEL, and stimulation of international sales equivalent to 10,000 Euros in the national currency.
Also, the program will be extended for one year to admit applications within the universal, industrial component. Engagement of investment funds will be made possible towards this end, as they will be given a possibility to issue subsidized loans. Minimum eligibility criteria of hotels will be halved and 5 rooms will be required instead of 10 to take part in the initiative.
Beneficiaries operating in the industry of hotels and balneology spas which will be missing the deadline and starting operation a year after the end of the current one, due to the pandemic, will have their deadline deferred, as will applicants within the component of cinematography. Their applications will be admitted through December 15, 2022 starting from January 3, 2022. The credit guarantee scheme will have the same extended schedule for admission of applications.
The Government of Georgia also approved two Decrees at its meeting. One of these was related to the privatization of state-owned property through direct sale, according to which 107 individuals in Rustavi and 25 in Marneuli will receive title ownership on their units for a symbolic price of 1 GEL, and their actual private property for dwelling will officially fall under their title ownership.
Source: Press Service of the Government Administration