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retails clients
central bank, a monetary authority p ress release informed. The system will be available starting from October 1.
The banks will be required to monitor the revenues of the retail clients on a monthly basis with the purpose of verifying that lending does not exceed maximum accepted indebtedness thresholds. The system will simplify the process of loan issuance and, at the same time, will save time and expense for the borrower.
The system will be available to legal persons running small businesses as well. According to the amendments made to the tax code, persons who run small businesses with a turnover of no larger than GEL500,000 (€170,000 approx.) will pay a 1% t ax on revenues starting July 1, 2018. Such persons receive the fiscal status of a small business, but are able to make a credit application by means of the system.
Upon consent, the system provides the commercial bank with the monthly declared income information making it easier for the commercial bank to review the credit application and make the relevant decision.
8.1.5 SMEs finance
EBRD assists SMEs in Georgia under Trade Ready programme
The European Bank for Reconstruction and Development (EBRD) on October 16 announced it has launched its trade support initiative Trade Ready in Georgia to help the country’s small and medium sized enterprises (SMEs) win their way to improving their competitiveness and succeed on international markets.
The EBRD is thus boosting the support it already extends to the country's SME entrepreneurs, while other international financial institutions also work in the same direction.
The initiative offers trade finance training and trade-related business advice for SMEs, networking opportunities with local banks, as well as policy dialogue to facilitate improvements in the regulatory environment. The support initiative is already operational in Serbia and will be implemented gradually in other EBRD countries.
Trade Ready will extend the outreach of the EBRD’s pioneering Trade Facilitation Programme (TFP) and dedicated business advice through the Bank’s Small Business Initiative.
While banks can expect to attract new clients with the introduction of new trade finance products, businesses will benefit from better access to finance and the chance to expand to international markets.
Earlier in March this year, the EBRD and the European Union extended their support to SMEs in Georgia, Moldova and Ukraine, with a total of almost €1.1bn in credit lines and trade finance and €58.3mn in EU grants.
The EU4Business-EBRD credit line has allowed SMEs in sectors such as manufacturing, retail, agriculture and food processing, transport, services and healthcare to improve their products, strengthen their export potential and adopt EU standards and technical norms, she explained.
Other international financial institutions extended their support for Georgia’s SME sector.
36 GEORGIA Country Report November 2018 www.intellinews.com