Informative Meeting on Credit-Guarantee Scheme State Program
01-04-2019

Upon the initiative of the Ministry of Economy and Sustainable Development, series of informative meetings on the State Program of Credit-Guarantee Scheme was launched. The meetings aim at informing individuals interested in small and medium business on the terms, procedures and stages of receiving loans within the program. The first information meeting was held today with the representatives of Small and Medium Enterprises Association, the Georgian Chamber of Commerce and Industry, the Local Self-government and the state program Enterprise Georgia beneficiary companies and was led by the Minister of Economy and Sustainable Development George Kobulia. 

The Deputy Minister of Economy, Ekaterine Mikabadze, the President of the Georgian Chamber of Commerce and Industry, Nino Chikovani, the President of Small and Medium Enterprises Association, Mikheil Chelidze, the Head of the LEPL Enterprise Georgia Agency of the Ministry of Economy and Sustainable Development of Georgia, Mikheil Khidureli and other officials also attended the meeting.

 “We start a series of workshops and seminars today, which are designed to explain people interested in business on the principles of credit-guarantee mechanism. This is one of the tools that we are introducing in order to help small and medium businesses to have an access to finances, which is one of the main challenges today. Within the framework of the program, the state will stand as a guarantor to those who do not have enough resources to secure a loan. This year, we have allocated 20 million GEL for this program and believe that the banks will issue up to 250 millions for SMEs,” – George Kobulia told the media representatives after the meting.

The Credit Guarantee Scheme will be implemented within the frames of the Enterprise Georgia Agency authority. The Agency will provide operation and monitoring of the program. The scheme will be based on the portfolio guarantees and the loan will be evaluated by the Bank.

The purpose of the Program is to improve access to finances for the SMEs that do not meet the requirements of the loan, to promote the economy and ensure inclusive economic growth. Within the framework of the Program, 70% of the individual loan will be refunded within the limit of 15% of the total portfolio of the loans issued within the scheme.

The Credit Guarantees will be issued only on loans in GEL with maximum term of 10 years. The minimum loan amount is 50000 GEL while the maximum amount is 2000000 GEL.

The beneficiary of the credit-guaranty scheme may be any entrepreneur with average turnover does not exit 20000 GEL during the last 3 years, while the loan liabilities in not higher than 8000000 GEL.

The credit-guarantee scheme is considered to be one of the most effective tools globally, which is aimed at improving the accessibility to finance for small and medium businesses.

Georgia’s credit-guarantee scheme is in compliance with the best international practice, the experience of the European countries and is based on the principles and recommendations developed by the International Organizations and Institutions (OECD, EIB). International experts were involved in the development of the scheme design.

In order to increase the transparency, confidence and management quality of the scheme, the Consultation Council will be established to supervise the credit-guarantee scheme program activities and monitor the results.


Ministry of Economy and Sustainable Development of Georgia. 2017 ©