The liquidation of the Georgia Development Fund, formerly known as the Partnership Fund, has been extended until April 1, 2027, after the government initially planned to complete the process by September 1, 2026. A government decree dated September 21 extended the deadline for preparing the fund’s dissolution strategy and completing its liquidation.
The fund’s liquidation was initiated after Parliament declared the law governing the joint-stock company Georgia Development Fund invalid in April 2026. The Ministry of Economy was tasked with overseeing the process. In May, the government dismissed the fund’s supervisory board and appointed senior officials from the Finance and Economy ministries and other state agencies to replace them. Former Deputy Director David Kereselidze was appointed acting head and liquidator.
The process involves transferring six plots of land totaling nearly 700,000 square meters to state ownership, as well as separating several wholly owned subsidiaries from the fund. These include Borjomi Likani International, Rukhi Shopping Center, Partnership Fund Green Development, Startup Georgia, Likani Residence and Georgian Natural Products. The fund also holds minority stakes in several companies, including aircraft components manufacturer Cyclone and Caucasian Sous Heritage, a producer of Racha ham.
The liquidation also requires the transfer of the fund’s creditor rights in various business projects to the state. Loan agreements will need to be amended so that the National Agency of State Property replaces the Georgia Development Fund as creditor. The need to transfer assets, corporate interests and outstanding financial obligations has contributed to the extension of the liquidation process..
