Levan Vepkhvadze, Executive Director of the Business Association of Georgian (BAG), speaks about the problems of the construction sector and asks to pay attention to the construction sector before it is time.
Levan Vepkhvadze also highlighted the main problems that construction companies face today.
According to him, construction companies have problems with sales since the state program on mortgage subsidy ended late last year. Sales fell and it had a negative impact on construction companies.
In addition, Vepkhvadze spoke about the state program for the introduction of Escrow account in development activities, which will also have a negative impact on the development sector.
"The state requires the developers to provide construction guarantees. Adding these guarantees will affect the price. This is an elastic product, unlike bread and primary demand items, where a price change of 10% -20% may not affect sales. In the construction sector, increase of 5-10% directly hits the sales. In these conditions, when the companies are struggling and asking for subsidies, we are telling them to provide a guarantee, which will be reflected in the price and it will be ultimately paid by the customer, "- said Levan Vepkhvadze on the program.
Executive Director of the Business Association of Georgian notes, that the sector must not be left alone, because it can be a blow to the Georgian economy.
“Let's pay attention to the construction sector otherwise it can be late”, - Vepkhvadze said.
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