New credit guarantee programme launches today for SMEs in Georgia
Small and medium sized businesses in Georgia will have better access to finances thanks to a new credit guarantee programme that is coming into force today.
The goal of the programme is to support small and medium sized businesses which operate in sectors where loan issuance is restricted, or do not have enough property for securing a loan.
"This year 20 million GEL has been allocated from the state budget and we hope the banks will issue loans worth about 250 million GEL for small and medium sized businesses”, said Economy Minister Giorgi Kobulia.
Within the credit guarantee programme up to 70% of the principal amount of the individual loan will be reimbursed within the limit of 15% of the total portfolio of loans issued within the programme.
Also credit guarantees will be issued only on loans taken in the Georgian national currency of the lari. The maximum period of the guarantees will be 10 years.
The minimum loan amount is 50,000 GEL (about $18,587/€16,544) and the maximum amount is 2,000,000 GEL (about $743,494/€661,769).
The beneficiary of the credit-warranty programme may be all the entrepreneurs which last three years’ average turnover does not exceed over 20,000,000 GEL (about $7.43m/€6.62m) and loan liabilities is not more than 8,000,000 GEL (about $2.97m/€2.65m).