PM Discusses ‘Cheap Credit Bank’ with Bankers

Prime Minister Lado Gurgenidze met with a group of bankers on December 11 to, as he put it, “materialize” a “cheap credit bank” proposal.

He said the authorities wanted to have the bank up and running by at least early spring 2008. The initiative, unveiled by presidential candidate Mikheil Saakashvili last week envisages the establishment of what he called a “state bank” with GEL 300 million in assets (Saakashvili said that the amount would increase to GEL 3 billion in the next few years) which would provide long-term loans at interest rates ranging from 4 to 10%. 

“We decided to take this step in order to jump start the economy, alleviate unemployment and to help those people with ambition and an interest in starting their own businesses – and there are a lot of such people,” the prime minister told the bankers. “We are here to create, together with you, soft loan resources in order to promote exports.”

He said that participation in the program was absolutely voluntary.

“Of course, I hope that many banks will get involved in this program, at least in some capacity,” he added.

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