State programme Produce in Georgia to support event companies, farmers in Georgia

Changes have been made to the state programme of Produce in Georgia that will benefit event companies and farmers in Georgia, announced Georgian Economy Minister Natia Turnava.

Following the changes, event companies will also be involved in a credit guarantee mechanism that will enable them to get subsidised bank loans for 12 months. 

Turnava said this will help companies solve problems created by the coronavirus crisis. 

As for the second change, farmers who are engaged in growing grapes, citrus and other tropical fruit varieties will also be included in the credit-guarantee programme of Produce in Georgia. 

What is the credit-guarantee programme?

Enterprise Georgia agency which runs the Produce in Georgia state programme says that the credit-guarantee mechanism aims to improve access to finance for small and medium size businesses, facilitate lending and ensure inclusive economic growth. 

The terms of the mechanism are:

• It will be based on portfolio guarantees and the loan will be evaluated by the commercial bank/microfinance organisation
• A security provided by the Agency for up to 90 per cent of the principal amount for each loan disbursed by commercial banks within the framework of the programme. Guarantee shall be issued for each bank participating in the program for up to 35 per cent of the disbursed loan portfolio within this programme, at any moment
• In the case of a commercial bank minimum loan volume – 50,000 GEL while maximum loan volume is 5 million GEL
• In the case of a microfinance organisation minimum loan volume – 20,000 GEL while maximum loan volume is 5 million GEL
• The maximum loan warranty period is 10 years

In August this year Enterprise Georgia announced that Produce in Georgia would support six new economic activities to tackle the economic challenges caused by Covid-19. 

These activities are: creation of computer games, hospital activities, general medical practice activities, specialised medical practice activities, dental practice activities, purchase and leasing of film production equipment.