17.Dec .2019 14:20

Produce in Georgia will try to find out why Guarantee Scheme does not have beneficiary

Produce in Georgia will try to find out why Guarantee Scheme does not have beneficiary
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Mikheil Khidureli, head of the agency "Produce in Georgia", is going to find out why credit-guarantee scheme does not have a beneficiary up to now.

The matter concerns that this scheme was launched on March 29 this year within the framework of "Produce in Georgia". Its goal is to guarantee up to 70% of collateral for small and medium enterprises, which will ease the business to access the finance. More than eight months had passed since the launch of the program.

"The credit-guarantee mechanism is organized by the state, this program is active. Banks are adapting the program. Generally, this type of mechanism is new and needs to be adapted by both the bank and the private sector.

The mechanism is enacted from our side. Banks have signed up to the agreement and because activity has been low for the first four months, we are now working to find out specific reasons for this and the government will do its best to have more beneficiaries of this program as soon as possible". Mikheil Khidureli explained