MINISTRY OF ECONOMY
AND SUSTAINABLE DEVELOPMENT
OF GEORGIA

A workshop was held at the Ministry of Economy and Sustainable Development of Georgia with participation of the representatives of the Turkish delegation, Georgian Parliament, the Ministry of Finance, the Ministry of Economy and Sustainable Development, the National Bank, the Partnership Found and the bank sector. New initiatives in terms of promotion of development and increased access to the finances were discussed at the meeting.

The representatives of the Turkish delegation talked about their experience and the steps taken in the real sector development and access to finances. Special emphasis was made on the guarantee mechanisms for small and medium businesses offered by the Turkish Credit Guarantee Fund. These mechanisms are successfully functioning in Turkey and greatly facilitate the small and medium businesses to receive loans as well as the development of the real sector of the economy, which has consequently reflected at employment and economic growth.

“For the development of small and medium business and expanded access to finances for this segment, we are launching another new reform. Credit Guarantee Mechanism, which we are talking about today, is a guarantee fund that comes as a guarantor for loans of small and medium-sized businesses to be received from commercial banks. We are deeply convinced that this reform will give another stimulus to the development of small and medium business in Georgia and thus create new jobs,” – the First Vice Prime Minister of Georgia, Minister of Economy and Sustainable Development Dimitry Kumsishvili stated upon conclusion of the workshop. 

It should be noted that the guarantee mechanism of lending is successfully introduced in many European countries and its goal is to promote additional finances into the economy and eradicate market failures that prevent viable businesses from taking credit. The popularity of the credit guarantee funds has increased especially during the last decade, as it makes easier to access to the financing for small and medium businesses, which gives a significant boost to economic growth.