"Based on the experience of the 2008 crisis, if the real estate subsidy program stops, it will trigger a chain reaction and the whole economy will collapse”, Irakli Rostomashvili, the head of the Georgian Association of Developers declares and considers that real estate subsidy program must be continued.
Rostomashvili told TV-program Business Morning that it would be difficult for the sector to cope the challenges in 2021 without the government’s assistance and that would be negatively reflected not only on the developer companies, but also on the population.
“By stopping subsidizing the real estate, we will get the same picture as we already have in terms of pandemic management. We started well, but now we see how the process is continued. The subsidy has led to the fact that the developer market has not collapsed, which is not just the developer companies, it includes buildings and their value.
The government helped the construction sector when there was not such a difficult condition. However, now when we have the worse wave it really can’t be stopped. Concrete steps must be taken," Rostomashvili said.
According to the Minister of Finance Vano Machavariani, the budget allocated for the mortgage loan subsidy has already expired. The government thinks that the business sector has been given a good incentive, but there will be no need to continue the subsidy program from 2021.
See all the news
“აჭარისწყალი ჯორჯიას” ახალი აღმასრულებელი დირექტორი ჰყავს
Fines for Violation of Traffic Rules in Azerbaijan Amounted to USD 55 MLN during Jan-Sep 2020
Key Highlights in Global and Regional Markets
EASTERN EUROPEAN DNS FORUM WAS HELD IN GEORGIA
რატომ ვერ ვმართეთ კორონავირუსი? - #Forbesკვირა პროლოგი გიორგი ისაკაძე
Q&A: Ek Law Office
LVMH and Tiffany Agree on Lower Price for $16 Billion Takeover
Woman in Charge
Hualing FIZ: Four New International Companies to Establish Free Zone Businesses in Georgia
U.S. Investment Firm Asks Republic of Georgia for License to Mineral Rights on Block 12
Focus on Georgia - ADB
Focus on Ganja Gap in Nagorno-Karabakh’s Regional Conflict
Scientific Community Calls for Action Against Lockdowns
Georgian Government seize foreign-owned asset, referred to International Arbitration
Studying Abroad Costs Georgian Students €10,000–15,000
Franco Frattini - Georgia, straying from the rule of law
Letter to the Newsweek Editor: 'Russia Determined to Wield Power in Georgia'
Caspiannews: Georgia’s Actions to Seize Foreign Company Disrupt Telecommunications Corridor Between Europe & Asia
Key Markets Indicators