Businessman Irakli Rukhadze says Georgia struggles to implement large-scale investment projects due to a lack of domestic capital, arguing that the economy is heavily dependent on bank lending.
Speaking to BMG, he said that “we are essentially living in a credit economy,” noting that major investments in Georgia are largely financed through bank loans rather than equity capital. He added that even when local investors initiate projects, banks often provide a significantly larger share of financing.
Rukhadze pointed to past deals, such as the acquisition of HeidelbergCement, as an example where borrowed funds far exceeded initial equity contributions, underscoring the sector’s reliance on credit.
Despite this, he said the situation also creates opportunities for foreign investors to enter the market and develop large projects. Rukhadze also confirmed that proceeds from the sale of Liberty Bank will be reinvested in new projects, including potential acquisitions in Georgia.
