10.Nov .2021 13:00

How Much Will Gov’t Spend On Credit-Guarantee Scheme For 2022?

How Much Will Gov’t Spend On Credit-Guarantee Scheme For 2022?
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Deputy Finance Minister Giorgi Kakauridze declares, that the Government of Georgia will spend GEL 100 million on Credit-Guarantee Scheme for 2022.

According to him, this year the terms of this scheme are changed, so the beneficiaries of other packages of Enterprise Georgia can also use the guarantee fund. He notes that all programs are presented with a single budget code in the state budget for 2022.

"The credit-guarantee scheme is an important incentive, which will be included in the state budget for 2022 as well. The budget for Enterprise Georgia totals to GEL 273 million, which also includes the credit-guarantee fund.

We had a different scheme in 2021, as those who used the credit-guarantee fund were not allowed to receive other incentive packages. From September 1, it is combined and presented in one package, as a result one beneficiary can receive an incentive package from three different sources.

As for the use of funds, we think that GEL 100 million will be spent next year, but we must keep in mind that this is not an ordinary expenditure. If the beneficiary is not bankrupt, these expenditures will eventually be returned to the budget. Part of that amount (GEL 50 million) will be returned to the budget next year. A large part of funds (90%) for Credit-Guaranteed Scheme will be returned to the budget", - explained Giorgi Kakauridze.

Budget spending of the credit-guarantee scheme is rather low compared to other programs of Enterprise Georgia. In 9M2021, GEL 41 million 500 thousand was planned to be spent from the state budget, but 42.7% of the amount was used.