Georgia presents anti-crisis plan for business sector affected by coronavirus outbreak

By Trend

The government of Georgia has presented an anti-crisis plan for Georgian business at a press conference on March 13, Trend reports citing Georgian media.

As reported, the government took these steps in order to easethe burden of the country's business sector caused by the coronavirus crisis.

"The government responded to the demand of the hotels, restaurants, tourist agencies and tour operators in Georgia and decided to postpone payment of property and income tax by four months," said the Prime Minister of Georgia Giorgi Gakharia while presenting the government’s anti-crisis plan.

According to him, this will benefit about 18,000 companies and 50,000 employees.

"This will leave more than 100 million lari ($34.02 million) in this sector during four months from March through June”, Gakharia said.

The prime minister added that the Georgian commercial banks extend term of payment on loans for three months for both individuals and micro, small and middle-sized businesses.

Moreover, as part of the ‘VAT returns’ reform, 600 million lari (about $214.67 million) was planned to be returned to the private sector of Georgia. In Gakharia’s words, now this amount of money will be doubled.

"This means that during one year, 1.20 billion lari ($408.2 million) will be returned to the Georgian economy”, he said.

"As part of the anti-crisis plan the government will further assist small hotels, so the government will pay about 3 million lari [about $1.07 million] to subsidize the loans of small hotels," Georgian Economy Minister Natia Turnava said speaking at the press conference.

According to her, the money will be allocated from the ‘Produce in Georgia’ state program and will benefit more than 18,000 objects.

Coronavirus outbreak has particularly affected the tourism sector in Georgia. According to official statistics, the tourism sector of Georgia in February this year suffered losses of 30 million lari ($10.5 million) due to the decrease in the number of visits by foreigners.

Against the backdrop of the outbreak of the coronavirus, as well as the oil crisis in the world, the national currency of Georgia began to fall rapidly.

As of today, Georgia has 25 confirmed cases of coronavirus.

Amid the coronavirus spread, Georgia has suspended direct flights with China, Iran and Italy, which are currently the largest centers of the outbreak.