Mikheil Khidurel, head of the state agency Enterprise Georgia, stated that the final mandate and concept of the forthcoming Economic Development Bank have not yet been determined. The new bank will be established through the merger of the former Georgian Development Fund and Enterprise Georgia.
Asked whether the new bank will issue loans, Khidureli said he does not know, as the bank’s structure and functions are still under development. “The reorganization process has started, but the final form has not yet been approved. Until then, I cannot comment on the exact mandate,” he said.
On March 16, Prime Minister Irakli Kobakhidze explained that the bank’s creation aims to consolidate state institutions focused on promoting economic development, combining Enterprise Georgia with the former Georgian Development Fund. Deputy Finance Minister Giorgi Kakauridze added that the institution will not create new fiscal risks for the state budget and will not have functions beyond those of the two merged entities.
Earlier, on March 4, the Parliament approved the liquidation of the Georgian Development Fund (formerly the Partnership Fund). As of now, no draft legislation has been introduced outlining the operational rules of the Economic Development Bank.
