Georgia’s Prime Minister Irakli Kobakhidze confirmed that lending will be a natural component of the planned Economic Development Bank’s activities. Responding to a question from BMG, he explained that specific institutions currently providing loans, many of which will be merged into the new bank, will continue their lending practices under the bank’s framework.
“Credits are issued by certain institutions, some of which will be integrated into this bank. Naturally, this practice will continue as part of the bank’s operations. Lending is already an established practice, and naturally, it will remain part of the bank’s functions,” Kobakhidze said.
He clarified that while the current Enterprise Georgia program, set to merge with the Georgia Development Fund, does not issue loans directly and instead subsidizes interest rates, detailed information about the bank’s operations will be provided once the institutional reform is completed. Kobakhidze also confirmed Economy Minister Mariami Kvrivishvili’s statement that the bank may finance energy projects, functioning similarly to the Energy Development Fund.
The government plans to establish the Economic Development Bank as part of its short-term legislative agenda. Its creation will require amendments to the Law on Commercial Banks, expected to be approved during the spring parliamentary session. Kobakhidze explained on February 7 that the new institution will merge the Georgia Development Fund with Enterprise Georgia, serving development-bank functions across all sectors, with a particular focus on areas requiring targeted financial support. Notably, the idea to create a Georgian Development Bank was first proposed by the “Georgian Dream” government in 2014, but the draft law was never enacted.
