The Amount Of Credits Released Under The Program Of Cheap Credits Totals GEL 11 Million

FROM THE REDACTION

The Government of Georgia approved funding under extra 3 credits envisaged by the Program of Cheap Credits. Total GEL 1 million will be released to Companies Copala, Aelita and Nisha.

Ekaterine Sharashidze, Minister of Economic Development of Georgia, declared to journalists about it. According to her, Company Copala, producer of rose oil, plans to purchase new a technological line and to increase capacity of the enterprise located in Telavi (Kakheti region). The credit amount makes GEL 210 thousand. In particular, the area of rose plantations is planned to be increased from 20 hectares to up to 70, while the sales volume – from GEL 12,000 to up to GEL 500,000. The Company exports the rose oil to Germany. 520 workplaces (80 permanent and 440 seasonal) will be established after increase of the capacity.
Cannery Aelita located in Shida Kartli deals with processing of vegetables and fruits. 45 kinds of products are produced at it – jams, preserves, fruit juices, etc. New technological line will be purchased with the funds, and the output will be increased. In 2008, the Company plans production of 1 million conditional cans, while the output is planned to be increased to up to 5 million conditional cans in the end of 2009. The product will be exported to Kazakhstan, Ukraine and Baltic States. The staff will be increased from 25 to 120.
Company Nisha plans to construct the enterprise for processing of milk in Shida Kartli. The Company will open 10 stations for milk delivery. GEL 1,2 million will be invested – GEL 700 thousand of the government’s credit and GEL 500 thousand of own funds. About 70 individuals will be employed under the project. Daily 15-20 tons of milk will be delivered, and daily 5-6 tons of the products will be produced. Under the Program of Cheap Credits, over 550 applications for total GEL 120 million credit funds have been received. Over GEL 11 million have been already released as credits. Actually equal amount of GEL 4 million was allotted under each component of the Program – Support to Export; Development of Regional Tourism and People’s Trades; 100 Georgian Business Projects 2008.
The Program of Cheap Credits in 2008 includes several components under the Law Concerning State Budget of Georgia for 2008. In particular, GEL 25 million are allotted under the component Support to Export. The money will be released as preferential credits to the enterprises that exported products in 2007 on the amount of at least GEL 100 thousand, while the export share in the total output of them made within 10%-75%. GEL 10 million are allotted under the component Development of Regional Tourism and People’s Trades. The money will be released as preferential credits for development of small and medium business. The credit amount will make maximum GEL 50,000. GEL 5,0 million are allotted under the component 100 Georgian Business Projects 2008. The component envisages release of preferential credits in the amounts within GEL 5,000-GEL 100,000 as awards for the best business projects.