The Georgian government has submitted a draft law to parliament proposing the liquidation of the Georgia Development Fund (formerly the Partnership Fund). According to the explanatory note, the fund’s credit portfolio and operations will be merged with the Enterprise Georgia program under the Ministry of Economy.
Following the merger, the government plans to establish a new financial institution, the Economy Development Bank. Details regarding the bank’s operations will be outlined in a separate draft law, which has not yet been submitted to parliament.
The Development Fund’s lending had been limited for years due to fiscal risk concerns noted by the IMF. In May 2023, the parliament approved a reorganization law that removed large state corporations from the fund’s structure, allowing it to resume new lending operations.
The draft liquidation law was prepared by the Ministry of Economy and Sustainable Development. The proposed changes aim to streamline state-led development financing while creating a new institution to continue supporting economic growth.
