On April 24, 2020 Prime Minister of Georgia – Giorgi Gakharia, presented Anti-Crisis Economic plan. Prime Minister reviewed social programs and economic reliefs that the government of Georgia had already implemented. Prime Minister presented the following anti-crisis plan:
1. Social assistance plan for citizens (to be renewed after the end of epidemic):
1.1. Employees who lost their jobs or were given unpaid leave, will receive 1 200 Gel throughout the period of 6 months, in monthly installments of GEL 200;
1.2. Employers will receive subsidy from the state for each retained employee for the consequent 6 months: 750 Gel will be exempted from income tax (for the salaries below GEL 1 500).
1.3. Self-employed individuals and those employed in informal sector will receive one-time assistance of GEL 300;
1.4. Additional assistance of GEL 600 during the consequent 6 months will be provided to:
1.4.1. Families with social rating grade ranging between 65 000 – 100 000; as well as between 0 – 100 000, which have three and more children below 16;
1.4.2. Individuals with severe disabilities and disabled children;
1.5. Pension Index System - from January, 2021;
1.5.1. Pension Increase of no less than inflation rate;
1.5.2. Pensions for the elderly (≥ 70) will be added with 80% of economic growth, meaning that annual rise of the pension will be higher than inflation;
1.5.3. Pension increase will not be less than GEL 20; for the elderly (≥ 70) - no less than GEL 25;
2. Assistance plan for enterprises;
2.1. Automatic return of VAT, double return of VAT surplus, without any additional procedures ;
2.2. Commercial banks will receive long-term resources of GEL 600 million;
2.3. Additional GEL 500 million will be assigned to business for:
2.3.1. Credit portfolio of 2 billion issued with guarantee;
2.3.2. Guarantee on the new loan - 90%, on loan restructuring – 30%;
2.4. Co-funding conditions of the program - Enterprise Georgia:
2.4.1. Co-funding period on loan/leasing will increase from 24 months to 36 months.
2.4.2. Amendment of the interest co-funding mechanisms;
2.4.3. Enlarged list of activities;
2.4.4. Lowered minimum range of loan/leasing;
2.4.5. Increase of working capital funding;
3. Assistance to agriculture;
3.1. Grants up to 30 GEL 000;
3.2. Agro credit for annual crops;
3.3. Assisting amelioration activities - exemption from amelioration fee, past years' debt relief;
3.4. Systemic registration of 1.2 million hectare during consequent 3 years.
4. Total amount of Covid-19 budget:
4.1. Citizens and social programs – GEL 1 035 000 000;
4.2. Economic support of enterprises – GEL 2 110 000 000;
4.3. Reinforcement of Healthcare system against pandemics – GEL 350 000 000;
5. Plan of lifting imposed restrictions;
Prime Minister presented 6-stage plan of lifting imposed restrictions, considering that citizens and companies comply with the rules of social distancing; Restrictions will be lifted stage by stage. Period during stages: 2 weeks on average. Transitioning to each stage will be conducted based on analyzes of epidemiologic situation. Lifted restrictions may be renewed or next stage delayed, accordingly.
Originally published 12 May, 2020
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